Grid Dynamics Holdings Inc (GDYN)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 350,571 312,910 310,482 211,280 111,283
Total current assets US$ in thousands 423,304 323,980 323,126 192,764 134,616
Total current liabilities US$ in thousands 55,544 42,223 38,710 25,344 13,318
Working capital turnover 0.95 1.11 1.09 1.26 0.92

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $350,571K ÷ ($423,304K – $55,544K)
= 0.95

Grid Dynamics Holdings Inc's working capital turnover has shown some fluctuations over the past five years.

The working capital turnover ratio indicates how efficiently a company is using its working capital to generate sales revenue. A higher ratio typically suggests that the company is effectively managing its working capital to support its operations and sales growth.

In 2020, the working capital turnover was 0.92, which indicates that the company generated $0.92 in sales for every dollar of working capital invested. The ratio improved to 1.26 in 2021, showcasing a more efficient utilization of working capital to generate sales revenue.

However, this improvement was followed by a slight decrease in the ratio to 1.09 in 2022 and a further increase to 1.11 in 2023. These fluctuations may suggest potential volatility or changes in the company's working capital management strategies during these years.

In 2024, the working capital turnover decreased to 0.95, indicating a slight decrease in efficiency compared to the previous year.

Overall, the trend in Grid Dynamics Holdings Inc's working capital turnover ratio has been mixed, with some improvement followed by slight fluctuations. Further analysis would be needed to understand the reasons behind these changes and assess the company's overall working capital management effectiveness.