Greif Bros Corporation (GEF)
Working capital turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,448,100 | 5,218,600 | 6,349,500 | 5,556,100 | 4,515,000 |
| Total current assets | US$ in thousands | 1,548,700 | 1,369,100 | 1,489,800 | 1,664,100 | 1,302,800 |
| Total current liabilities | US$ in thousands | 1,011,900 | 939,300 | 1,047,900 | 1,314,100 | 1,000,100 |
| Working capital turnover | 10.15 | 12.14 | 14.37 | 15.87 | 14.92 |
October 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,448,100K ÷ ($1,548,700K – $1,011,900K)
= 10.15
Based on the data provided for Greif Bros Corporation's working capital turnover ratio over the past five years, we observe a fluctuating trend.
In October 2020, the working capital turnover ratio was reported at 14.92, indicating that the company generated approximately $14.92 in revenue for every dollar of working capital invested. This ratio increased in the following year, reaching 15.87 by October 2021, suggesting improved efficiency in utilizing working capital to generate sales.
However, the ratio decreased in the subsequent years, with figures of 14.37 in 2022, 12.14 in 2023, and 10.15 in 2024. A declining working capital turnover ratio may indicate inefficiencies in managing working capital or a slowdown in sales relative to the investment in working capital.
Overall, the decreasing trend in Greif Bros Corporation's working capital turnover ratio over the five-year period signals a potential concern regarding the company's ability to efficiently utilize its working capital to drive revenue generation. Further analysis and monitoring of working capital management practices are recommended to address these fluctuations and optimize operational efficiency.