Griffon Corporation (GFF)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,621,550 | 2,596,560 | 2,760,350 | 2,207,580 | 2,333,180 |
| Total current assets | US$ in thousands | 929,476 | 980,591 | 1,214,670 | 1,368,680 | 1,106,030 |
| Total current liabilities | US$ in thousands | 348,990 | 359,149 | 423,579 | 531,636 | 441,822 |
| Working capital turnover | 4.52 | 4.18 | 3.49 | 2.64 | 3.51 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,621,550K ÷ ($929,476K – $348,990K)
= 4.52
The working capital turnover for Griffon Corporation has shown a fluctuating trend over the past five years. In 2024, the working capital turnover ratio increased to 4.52, indicating that Griffon Corporation generated $4.52 in net sales for each dollar of working capital invested. This improvement suggests that the company is efficiently utilizing its working capital to generate revenue compared to the previous year.
In 2023, the working capital turnover was 4.18, a slight decrease from the previous year but still demonstrating efficient utilization of working capital. The ratio further decreased to 3.49 in 2022, suggesting a decrease in the efficiency of generating sales from working capital compared to the previous year.
In 2021, there was a significant improvement in the working capital turnover to 2.64, indicating a substantial increase in efficiency in utilizing working capital to generate revenue. However, in 2020, the ratio slightly increased to 3.51, showing a reversal in the efficiency trend seen in 2021.
Overall, the working capital turnover ratio for Griffon Corporation has shown variability over the years, with improvements in some years and declines in others. It is important for the company to consistently focus on efficiently managing its working capital to maximize sales generation from its current assets.