Genpact Limited (G)
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 | 4,476,880 | 4,433,170 | 4,408,420 | 4,392,050 | 4,371,170 | 4,340,910 | 4,245,610 | 4,144,586 | 4,022,217 | 3,900,505 | 3,820,288 | 3,732,256 | 3,709,377 | 3,699,548 | 3,652,824 | 3,634,529 | 3,520,543 | 3,415,143 | 3,274,322 | 3,121,084 |
| Total current assets | US$ in thousands | 1,891,510 | 1,869,550 | 1,748,110 | 1,733,560 | 1,779,490 | 1,758,380 | 1,719,300 | 1,984,730 | 1,921,640 | 2,075,240 | 1,882,110 | 1,711,630 | 1,748,870 | 1,878,710 | 1,916,230 | 1,478,940 | 1,551,680 | 1,556,860 | 1,459,800 | 1,394,540 |
| Total current liabilities | US$ in thousands | 1,317,930 | 978,958 | 931,443 | 944,524 | 1,103,320 | 1,633,110 | 1,091,290 | 1,383,290 | 1,308,800 | 1,312,350 | 1,240,710 | 843,738 | 1,202,640 | 1,146,650 | 1,283,320 | 944,057 | 910,211 | 1,064,190 | 1,003,150 | 1,011,780 |
| Working capital turnover | 7.81 | 4.98 | 5.40 | 5.57 | 6.46 | 34.65 | 6.76 | 6.89 | 6.56 | 5.11 | 5.96 | 4.30 | 6.79 | 5.05 | 5.77 | 6.79 | 5.49 | 6.93 | 7.17 | 8.15 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,476,880K ÷ ($1,891,510K – $1,317,930K)
= 7.81
The working capital turnover for Genpact Ltd has shown some fluctuation over the past eight quarters. In Q4 2023, the working capital turnover was 7.81, indicating that the company generated $7.81 in revenue for every $1 of working capital invested during that quarter. This represented an improvement from the previous quarter's ratio of 4.98.
While the working capital turnover in Q4 2023 showed a positive trend, it was still lower than the peak ratio of 34.65 observed in Q3 2022. This significant drop in Q1 2023 suggests a potential issue with the company's efficiency in utilizing its working capital during that period. However, the ratios in Q2 and Q3 2023 (5.40 and 6.46, respectively) showed a recovery from the low point in Q1 2023.
Overall, the working capital turnover for Genpact Ltd has demonstrated variability, with fluctuations in operational efficiency over the past eight quarters. It is important for the company to monitor and manage its working capital effectively to ensure optimal utilization and support sustainable growth.
Peer comparison
Dec 31, 2023