Haemonetics Corporation (HAE)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	2,594,610	2,323,320	985,896	860,363	972,079
Total current assets	US$ in thousands	768,903	769,722	756,031	693,546	603,639
Total current liabilities	US$ in thousands	300,383	251,816	442,266	253,495	274,822
Working capital turnover		5.54	4.49	3.14	1.96	2.96

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,594,610K ÷ ($768,903K – $300,383K)
= 5.54

Haemonetics Corporation's working capital turnover has shown a positive trend over the past five years. The ratio has increased from 2.96 in 2020 to 5.54 in 2024, indicating a significant improvement in the efficiency of the company's working capital management.

A higher working capital turnover ratio suggests that the company is generating more revenue per unit of working capital, which is a positive sign of operational efficiency. This improvement can be attributed to better inventory management, efficient receivables collection, and effective management of payables.

The trend indicates that Haemonetics Corporation has been able to better utilize its working capital to support its operations and generate revenue. This improvement in working capital turnover reflects positively on the company's financial health and operational efficiency.