Grocery Outlet Holding Corp (GO)

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
Revenue (ttm) US$ in thousands 3,954,961 3,892,938 3,808,072 3,696,411 3,558,750 3,413,730 3,265,937 3,145,257 3,066,322 3,091,139 3,084,909 3,110,986 3,116,154 2,966,663 2,852,320
Total current assets US$ in thousands 516,551 514,489 440,292 427,207 467,357 468,577 429,034 461,132 442,745 430,405 401,990 364,651 381,957 344,663 334,833 373,094 270,826 277,991
Total current liabilities US$ in thousands 383,965 383,713 321,007 300,939 280,514 287,448 260,432 242,242 237,906 228,461 213,893 197,054 232,646 195,978 207,908 192,490 208,627 206,231
Working capital turnover 29.83 29.77 31.92 29.27 19.05 18.85 19.37 14.37 14.97 15.31 16.40 18.56 20.87 19.95 22.47

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,954,961K ÷ ($516,551K – $383,965K)
= 29.83

Based on the data provided, the working capital turnover for Grocery Outlet Holding Corp has fluctuated over the past few years. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.

In this case, the working capital turnover ratio has shown an overall increasing trend from 2019 to 2023. The ratio increased significantly from 14.97 in Dec 2021 to a high of 31.92 in Jun 2023, indicating that the company is utilizing its working capital more effectively to generate sales during this period.

However, there are fluctuations in the ratios from quarter to quarter, suggesting some variability in the efficiency of working capital management. For example, there was a notable decrease in the ratio from 2019 to 2020, followed by a steady increase until mid-2023.

Overall, the increasing trend in the working capital turnover ratio indicates that Grocery Outlet Holding Corp has been improving its efficiency in utilizing working capital to drive sales, which is a positive sign for the company's operational performance and financial health. However, it is important to monitor future changes in the ratio to ensure consistent and effective working capital management.


Peer comparison

Dec 31, 2023

Company name
Symbol
Working capital turnover
Grocery Outlet Holding Corp
GO
29.83
Kroger Company
KR
Sprouts Farmers Market LLC
SFM
120.08