ExlService Holdings Inc (EXLS)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 1,836,094 1,765,979 1,701,554 1,655,232 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
Total current assets US$ in thousands 795,189 767,689 703,712 664,717 679,673 651,568 613,177 566,227 612,794 580,584 561,014 572,618 578,144 545,175 541,162 596,550 609,278 565,063 536,540 604,892
Total current liabilities US$ in thousands 290,116 254,185 286,862 261,441 326,403 306,146 259,063 280,904 277,946 286,968 266,014 222,121 495,686 222,926 207,109 197,720 221,078 184,899 184,163 258,364
Working capital turnover 3.64 3.44 4.08 4.10 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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,836,094K ÷ ($795,189K – $290,116K)
= 3.64

ExlService Holdings Inc's working capital turnover has shown fluctuations over the past few years, ranging from a low of 2.43 in March 2021 to a high of 13.42 in December 2021. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to support its operations.

The working capital turnover improved significantly in the second half of 2021 and continued to rise into 2022, reaching a peak of 5.19 in March 2023. This could suggest that ExlService Holdings Inc was able to convert its working capital into sales at a faster rate during this period.

However, there was a slight decline in the working capital turnover in the latter part of 2023 and throughout 2024, stabilizing around 3.64 by the end of December 2024. While the ratio remained above the levels seen in the early years, the downward trend may indicate a slowdown in the company's efficiency in managing and utilizing its working capital to support its business activities.

Overall, ExlService Holdings Inc's working capital turnover has demonstrated both positive and challenging trends, reflecting varying levels of efficiency in its working capital management over the analyzed period.