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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| 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