The Hain Celestial Group Inc (HAIN)

Working capital turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,678,400	1,755,310	1,900,380	1,977,810	2,053,900
Total current assets	US$ in thousands	557,059	591,031	600,126	577,055	560,934
Total current liabilities	US$ in thousands	281,503	230,867	269,303	290,434	300,277
Working capital turnover		6.09	4.87	5.74	6.90	7.88

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,678,400K ÷ ($557,059K – $281,503K)
= 6.09

Working capital turnover measures how effectively a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates better efficiency in utilizing its current assets to support sales.

Based on the data provided for The Hain Celestial Group Inc, the working capital turnover has fluctuated over the past five years. In 2020, the ratio was the highest at 7.88, indicating that the company generated $7.88 in sales for every $1 of working capital invested. There was a slight decline in efficiency in 2021, but the ratio remained relatively high at 6.90. In 2022, the ratio improved to 5.74, suggesting that the company was managing its working capital more effectively to support sales.

However, in 2023 and 2024, there was a decline in the working capital turnover to 4.87 and 6.09, respectively. While the ratio in 2024 is still higher compared to 2023, the downward trend from 2022 raises some concerns about the company's ability to efficiently utilize its working capital to generate sales revenue.

Overall, The Hain Celestial Group Inc has shown variations in its working capital turnover over the past five years, indicating fluctuations in how efficiently the company is managing its current assets to support its sales activities. It would be important for the company to closely monitor and analyze these changes to ensure optimal utilization of its working capital going forward.