Greif Bros Corporation (GEF)
Working capital turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,270,000 | 6,333,800 | 5,654,500 | 4,538,400 | 4,583,900 |
| Total current assets | US$ in thousands | 1,369,100 | 1,499,400 | 1,664,100 | 1,302,800 | 1,249,000 |
| Total current liabilities | US$ in thousands | 939,300 | 1,047,900 | 1,314,100 | 1,000,100 | 825,400 |
| Working capital turnover | 12.26 | 14.03 | 16.16 | 14.99 | 10.82 |
October 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,270,000K ÷ ($1,369,100K – $939,300K)
= 12.26
The working capital turnover for Greif Inc has shown a decreasing trend over the last five years, moving from 10.85 in 2019 to 12.14 in 2023. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively using its working capital to support sales activities.
While the decreasing trend in the working capital turnover may initially raise concerns, it's important to consider the company's overall financial performance and industry benchmarks to gain a clearer understanding. Further analysis could include evaluating the company's working capital management policies and identifying any potential factors contributing to the trend.