Grocery Outlet Holding Corp (GO)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,371,500 | 3,969,450 | 3,578,100 | 3,079,580 | 3,134,640 |
| Total current assets | US$ in thousands | 503,898 | 516,551 | 467,357 | 442,745 | 381,957 |
| Total current liabilities | US$ in thousands | 349,624 | 383,965 | 280,514 | 237,906 | 232,646 |
| Working capital turnover | 28.34 | 29.94 | 19.15 | 15.03 | 20.99 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,371,500K ÷ ($503,898K – $349,624K)
= 28.34
The working capital turnover ratio measures how efficiently a company is able to generate sales using its working capital. Looking at the data provided for Grocery Outlet Holding Corp, we observe fluctuations in the working capital turnover over the years.
In 2020, the working capital turnover was 20.99, indicating that the company generated sales approximately 21 times using its working capital during that year. However, in 2021, this ratio decreased to 15.03, suggesting that the company's efficiency in utilizing working capital to generate sales decreased compared to the previous year.
There was an improvement in 2022, with the working capital turnover increasing to 19.15, indicating a better utilization of working capital to generate sales. The ratio saw a significant jump in 2023 to 29.94, signaling a notable enhancement in efficiency in converting working capital into sales during that year. In 2024, the ratio remained high at 28.34, reflecting continued strong performance in utilizing working capital effectively to drive sales.
Overall, the working capital turnover ratio for Grocery Outlet Holding Corp has displayed fluctuations over the years, with improvements in certain periods indicating better efficiency in generating sales using working capital.
Peer comparison
Dec 31, 2024