Greenbrier Companies Inc (GBX)
Working capital turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,944,000 | 2,977,700 | 1,747,900 | 2,792,200 | 3,033,590 |
| Total current assets | US$ in thousands | 1,105,300 | 1,398,100 | 1,332,500 | 1,363,270 | 994,377 |
| Total current liabilities | US$ in thousands | 789,700 | 1,021,700 | 941,981 | 815,406 | 595,475 |
| Working capital turnover | 12.50 | 7.91 | 4.48 | 5.10 | 7.60 |
August 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,944,000K ÷ ($1,105,300K – $789,700K)
= 12.50
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A high ratio indicates effective management of working capital, while a low ratio suggests inefficiency or underutilization of resources.
Greenbrier Cos., Inc.'s working capital turnover has shown variations over the past five years. In 2023, the ratio significantly increased to 4.53 from 2.90 in 2022, indicating a considerable improvement in the company's working capital efficiency. This surge could be attributed to a more effective management of its current assets and liabilities to support sales activities.
However, compared to 2021 and 2019, where the ratios were 2.26 and 3.45 respectively, there has been a fluctuation in the efficiency of working capital utilization. This suggests that Greenbrier may have experienced some challenges in managing its working capital to support sales during these years.
It would be beneficial for investors and management to further investigate the reasons behind these fluctuations and determine if they are the result of changes in internal operations, industry dynamics, or other external factors. Overall, the recent increase in the working capital turnover ratio signals a positive trend that should be monitored to ensure sustained efficiency in working capital management.
Peer comparison
Aug 31, 2023