Genpact Limited (G)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,767,140 | 4,476,890 | 4,371,170 | 4,022,210 | 3,709,380 |
| Total current assets | US$ in thousands | 2,080,100 | 1,891,510 | 1,779,490 | 1,921,640 | 1,748,870 |
| Total current liabilities | US$ in thousands | 963,739 | 1,317,930 | 1,103,320 | 1,308,800 | 1,202,640 |
| Working capital turnover | 4.27 | 7.81 | 6.46 | 6.56 | 6.79 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,767,140K ÷ ($2,080,100K – $963,739K)
= 4.27
Genpact Limited's working capital turnover has shown a fluctuating trend over the past five years. In 2020, the working capital turnover was 6.79, indicating that the company generated $6.79 in revenue for every $1 of working capital invested. The ratio decreased slightly to 6.56 in 2021 and further to 6.46 in 2022, suggesting a potential inefficiency in managing its working capital during those years.
However, there was a significant improvement in 2023, with the working capital turnover increasing to 7.81, reflecting a more effective utilization of working capital to generate revenue. This positive trend was reversed in 2024, where the ratio dropped to 4.27, indicating a decline in working capital efficiency compared to the previous year.
Overall, Genpact Limited should closely monitor its working capital turnover to ensure efficient management of its working capital resources and strive for consistency in generating revenue relative to its working capital investments.
Peer comparison
Dec 31, 2024