Exponent Inc (EXPO)
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 | 536,766 | 541,221 | 535,064 | 525,124 | 513,293 | 499,444 | 488,670 | 478,266 | 466,269 | 456,002 | 438,260 | 410,428 | 399,900 | 406,775 | 409,660 | 424,121 | 417,199 | 399,228 | 392,982 | 382,097 |
| Total current assets | US$ in thousands | 379,532 | 343,316 | 344,628 | 318,301 | 349,157 | 332,512 | 342,534 | 376,691 | 452,762 | 417,560 | 397,809 | 353,555 | 366,832 | 328,649 | 314,270 | 293,396 | 364,044 | 351,532 | 334,661 | 304,610 |
| Total current liabilities | US$ in thousands | 161,909 | 129,657 | 124,540 | 109,179 | 159,029 | 137,917 | 127,534 | 109,110 | 152,982 | 126,418 | 122,966 | 87,942 | 117,308 | 96,371 | 89,783 | 77,099 | 123,960 | 101,034 | 92,884 | 72,193 |
| Working capital turnover | 2.47 | 2.53 | 2.43 | 2.51 | 2.70 | 2.57 | 2.27 | 1.79 | 1.56 | 1.57 | 1.59 | 1.55 | 1.60 | 1.75 | 1.82 | 1.96 | 1.74 | 1.59 | 1.63 | 1.64 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $536,766K ÷ ($379,532K – $161,909K)
= 2.47
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. A higher ratio indicates more effective management of working capital.
Exponent Inc's working capital turnover has fluctuated over the past few periods, ranging from a low of 1.55 in March 2022 to a high of 2.70 in December 2022. The average working capital turnover for the periods shown is approximately 2.01.
In general, Exponent Inc's working capital turnover has been above 1.5, indicating that the company is effectively using its working capital to support sales activity. However, the variability in the ratio suggests that there may be fluctuations in the management of working capital efficiency over time.
It is important for Exponent Inc to monitor and analyze the factors influencing working capital turnover to ensure optimal efficiency in managing its short-term assets and liabilities. Additionally, comparing this ratio to industry benchmarks can provide further insight into the company's performance in utilizing its working capital.
Peer comparison
Dec 31, 2023