Grid Dynamics Holdings Inc (GDYN)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	350,571	328,358	318,342	312,647	312,910	315,417	319,159	319,152	310,482	296,443	273,215	243,556	211,280	174,869	143,268	117,960	111,283	113,158	118,248	124,506
Total current assets	US$ in thousands	423,304	322,995	330,412	322,502	323,980	326,053	321,472	330,079	323,126	319,363	207,753	206,569	192,764	240,948	107,467	126,574	134,616	147,839	143,598	145,068
Total current liabilities	US$ in thousands	55,544	54,234	46,267	43,120	42,223	52,470	53,470	50,358	38,710	31,637	38,568	32,691	25,344	24,219	25,159	17,957	13,318	7,796	7,567	9,772
Working capital turnover		0.95	1.22	1.12	1.12	1.11	1.15	1.19	1.14	1.09	1.03	1.61	1.40	1.26	0.81	1.74	1.09	0.92	0.81	0.87	0.92

December 31, 2024 calculation

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

Grid Dynamics Holdings Inc's working capital turnover has shown fluctuations over the past few years, ranging from 0.81 to 1.74. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In the initial period, the ratio was relatively low, indicating that the company was not efficiently utilizing its working capital to support sales. However, from March 31, 2021, there was a significant improvement in the ratio, reaching a peak of 1.74 on June 30, 2021, suggesting better management of working capital to drive sales.

Subsequently, there were some fluctuations in the ratio, with occasional decreases and increases. Overall, the ratio has generally remained above 1 since March 31, 2021, indicating that the company has been effectively using its working capital to support sales growth.

The slight fluctuations in the ratio may be influenced by various factors, including changes in the company's sales levels, inventory management, and accounts receivable and payable practices. Monitoring and maintaining a healthy working capital turnover ratio is crucial for sustaining business operations and growth.