Genpact Limited (G)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,476,890 | 4,371,170 | 4,022,210 | 3,709,380 | 3,520,540 |
| Total current assets | US$ in thousands | 1,891,510 | 1,779,490 | 1,921,640 | 1,748,870 | 1,551,680 |
| Total current liabilities | US$ in thousands | 1,317,930 | 1,103,320 | 1,308,800 | 1,202,640 | 910,211 |
| Working capital turnover | 7.81 | 6.46 | 6.56 | 6.79 | 5.49 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,476,890K ÷ ($1,891,510K – $1,317,930K)
= 7.81
The working capital turnover of Genpact Ltd has shown a consistent and positive trend over the past five years, increasing from 5.49 in 2019 to 7.81 in 2023. This indicates that the company is efficiently utilizing its working capital to generate revenues.
A working capital turnover of 7.81 in 2023 means that for every dollar of working capital invested, the company generated $7.81 in revenues. This improvement suggests that Genpact Ltd has been able to manage its working capital more effectively over the years, potentially through better inventory management, faster accounts receivable collection, or optimized accounts payable processes.
The upward trend in working capital turnover reflects the company's ability to operate more efficiently with its current level of working capital. It also indicates that Genpact Ltd has been able to streamline its operations and convert its working capital into revenue more effectively, which is a positive sign for the company's financial health and overall performance.
Peer comparison
Dec 31, 2023