Graham Holdings Co (GHC)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	4,403,440	4,303,530	4,201,410	3,997,102	3,881,548	3,696,730	3,495,222	3,386,894	3,193,798	3,082,719	2,998,779	2,846,516	2,873,113	2,865,588	2,887,426	2,972,157	2,932,099	2,857,708	2,793,654	2,728,729
Total current assets	US$ in thousands	1,849,300	1,798,100	1,665,930	1,642,590	1,679,260	1,639,370	1,601,430	1,767,010	1,847,170	1,701,580	1,640,610	1,837,440	1,774,190	1,519,020	1,408,400	1,449,020	1,663,480	1,534,260	1,485,270	1,477,540
Total current liabilities	US$ in thousands	1,229,680	1,151,850	1,108,390	1,128,290	1,145,170	1,141,060	1,020,420	1,042,890	1,166,340	1,020,610	902,602	927,734	949,646	915,459	818,104	937,379	1,041,870	988,961	814,564	829,756
Working capital turnover		7.11	6.66	7.54	7.77	7.27	7.42	6.02	4.68	4.69	4.53	4.06	3.13	3.48	4.75	4.89	5.81	4.72	5.24	4.17	4.21

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,403,440K ÷ ($1,849,300K – $1,229,680K)
= 7.11

The working capital turnover for Graham Holdings Co. has shown fluctuations over the past eight quarters, ranging from a low of 4.68 in Q1 2022 to a high of 7.86 in Q1 2023. This ratio measures the efficiency with which the company is utilizing its working capital to generate revenue. A higher working capital turnover indicates that the company is effectively utilizing its resources to generate sales.

Overall, Graham Holdings Co. has demonstrated a relatively strong working capital turnover, with an average of approximately 7.05 over the eight-quarter period. This suggests that the company is efficiently managing its working capital to support its operations and drive revenue growth.

It is important for investors and analysts to monitor the working capital turnover ratio over time to assess the company's efficiency in managing its working capital and generating sales. Fluctuations in this ratio may indicate changes in the company's operating efficiency or financial health.