Freshpet Inc (FRPT)
Working capital turnover
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,014,577 | 975,177 | 927,889 | 875,143 | 823,221 | 766,894 | 717,307 | 668,019 | 630,695 | 595,344 | 545,380 | 501,637 | 464,246 | 425,489 | 394,142 | 370,742 | 342,106 | 318,790 | 300,020 | 281,096 |
| Total current assets | US$ in thousands | 405,392 | 436,998 | 421,294 | 405,220 | 406,958 | 427,319 | 462,390 | 487,140 | 513,144 | 261,965 | 383,479 | 454,721 | 142,965 | 150,325 | 237,790 | 344,617 | 396,042 | 109,096 | 137,482 | 172,621 |
| Total current liabilities | US$ in thousands | 82,574 | 98,869 | 89,242 | 90,000 | 81,946 | 89,222 | 83,773 | 77,442 | 55,739 | 89,614 | 130,972 | 70,839 | 96,444 | 58,946 | 28,743 | 57,202 | 45,823 | 33,121 | 23,970 | 19,412 |
| Working capital turnover | 3.14 | 2.88 | 2.79 | 2.78 | 2.53 | 2.27 | 1.89 | 1.63 | 1.38 | 3.45 | 2.16 | 1.31 | 9.98 | 4.66 | 1.89 | 1.29 | 0.98 | 4.20 | 2.64 | 1.83 |
March 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,014,577K ÷ ($405,392K – $82,574K)
= 3.14
The working capital turnover ratio of Freshpet Inc exhibits notable fluctuations over the observed period from June 2020 through March 2025. Initially, the ratio stood at 1.83 as of June 2020, indicating a moderate efficiency in using working capital to generate sales. This ratio increased significantly, reaching a peak of 4.66 at the end of 2021, suggesting improved operational efficiency and more effective management of working capital relative to sales during that period.
The most substantial escalation occurred between December 2021 and March 2022, where the ratio surged to 9.98. This sharp rise indicates a period where Freshpet was able to generate considerably higher sales from its working capital, potentially due to strategic initiatives, scaling operations, or increased demand. Following this peak, the ratio declined to 1.31 by June 2022, implying a temporary decline in efficiency or a possible change in working capital management practices.
Subsequently, the ratio experienced a gradual upward trend, reaching 2.27 by the end of 2023 and continuing to rise to approximately 3.14 by March 2025. This upward movement suggests a trend toward enhanced operational efficiency, with the company increasingly generating higher sales relative to its working capital over the most recent periods.
Overall, the working capital turnover ratio reflects periods of both significant improvement and decline, likely influenced by operational, strategic, or market factors. The notable peak in late 2021 and early 2022 indicates a period of optimized working capital utilization, whereas the subsequent decline and subsequent recovery suggest ongoing adjustments in operational efficiency. The incremental increase towards the latest quarters suggests a positive trend in managing working capital effectively to support sales growth.
Peer comparison
Mar 31, 2025