ExlService Holdings Inc (EXLS)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,619,020	1,412,250	1,106,200	951,676	981,632
Total current assets	US$ in thousands	679,673	612,794	578,144	609,278	541,258
Total current liabilities	US$ in thousands	326,403	277,946	495,686	221,078	229,349
Working capital turnover		4.58	4.22	13.42	2.45	3.15

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,619,020K ÷ ($679,673K – $326,403K)
= 4.58

The working capital turnover of ExlService Holdings Inc has varied over the past five years, as evidenced by the figures provided. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.

In 2023, the working capital turnover ratio improved to 4.62 compared to the previous year, showing that the company was able to generate revenue more effectively using its working capital. This improvement suggests that ExlService Holdings Inc managed its working capital more efficiently in 2023.

In 2022, the working capital turnover was 4.22, which was slightly lower compared to 2023 but still higher than the ratios in 2020 and 2019. It indicates that the company's ability to generate revenue using its working capital remained relatively stable.

The significant spike in working capital turnover to 13.61 in 2021 indicates a notably efficient utilization of working capital to generate revenue that year. This could be due to effective management of current assets and liabilities, resulting in a high turnover rate.

The ratio dropped to 2.47 in 2020, indicating a decline in the efficiency of working capital utilization compared to the previous year. This might have been influenced by various factors such as changes in the company's operational efficiency or management of working capital components.

In 2019, the working capital turnover was 3.18, showing a moderate level of efficiency in utilizing working capital to generate revenue. Overall, the trend in the working capital turnover of ExlService Holdings Inc reflects fluctuations in how effectively the company managed its working capital over the five-year period.