Greenbrier Companies Inc (GBX)
Working capital turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,544,700 | 3,944,000 | 2,977,700 | 1,747,900 | 2,792,200 |
| Total current assets | US$ in thousands | 1,167,800 | 1,105,300 | 1,398,100 | 1,332,500 | 1,363,270 |
| Total current liabilities | US$ in thousands | 1,017,000 | 789,700 | 1,021,700 | 941,981 | 815,406 |
| Working capital turnover | 23.51 | 12.50 | 7.91 | 4.48 | 5.10 |
August 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,544,700K ÷ ($1,167,800K – $1,017,000K)
= 23.51
The working capital turnover of Greenbrier Companies Inc has shown a steadily improving trend over the past five years. The ratio has increased from 5.10 in 2020 to 23.51 in 2024. This indicates that the company is becoming more efficient in utilizing its working capital to generate sales revenue.
A higher working capital turnover ratio signifies that Greenbrier is effectively managing its resources to support sales growth. This improvement could be attributed to better working capital management practices, such as efficient inventory control, optimized accounts receivable and payable cycles, and effective cash flow management.
Overall, the increasing trend in the working capital turnover ratio reflects positively on Greenbrier's operational efficiency and financial management strategies, indicating the company's ability to generate more revenue per unit of working capital invested over the years.
Peer comparison
Aug 31, 2024