ExlService Holdings Inc (EXLS)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,619,020	1,581,075	1,534,327	1,479,524	1,412,249	1,334,679	1,250,293	1,176,913	1,106,200	1,059,066	1,021,331	968,383	953,303	961,222	971,337	991,235	984,191	962,222	943,035	913,024
Total current assets	US$ in thousands	679,673	651,568	613,177	566,227	612,794	580,584	561,014	572,618	578,144	545,175	541,162	596,550	609,278	565,063	536,540	604,892	541,258	506,226	489,075	536,058
Total current liabilities	US$ in thousands	326,403	306,146	259,063	280,904	277,946	286,968	266,014	222,121	495,686	222,926	207,109	197,720	221,078	184,899	184,163	258,364	229,349	187,902	168,240	157,533
Working capital turnover		4.58	4.58	4.33	5.19	4.22	4.55	4.24	3.36	13.42	3.29	3.06	2.43	2.46	2.53	2.76	2.86	3.16	3.02	2.94	2.41

December 31, 2023 calculation

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

ExlService Holdings Inc has shown variations in its working capital turnover ratio over the past eight quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates a more efficient use of working capital.

In Q1 2023, ExlService Holdings Inc achieved a working capital turnover ratio of 5.20, indicating a significant increase in efficiency compared to the previous quarter. This suggests that the company was able to generate more revenue per unit of working capital, which is a positive sign.

However, in Q2 2023, the ratio decreased to 4.35, showing a slight decline in efficiency. The ratio remained relatively stable in Q3 2023 and Q4 2023 at 4.61 and 4.62, respectively, which indicates that the company maintained a fairly consistent level of efficiency in its working capital management during these quarters.

Comparing the ratios to the same quarters in the previous year, there seems to be an overall improvement. In Q1 2022, the ratio was 3.40, which was lower than all the ratios reported in 2023. This indicates that ExlService Holdings Inc has made progress in utilizing its working capital more effectively to generate revenue.

Overall, ExlService Holdings Inc has shown fluctuations in its working capital turnover ratio, but there is an overall trend of improvement when comparing the current year's ratios to the previous year. This suggests that the company has been successful in optimizing its working capital utilization to drive revenue growth.