Helen of Troy Ltd (HELE)
Working capital turnover
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,907,660 | 2,005,050 | 2,072,670 | 2,223,360 | 2,098,800 |
| Total current assets | US$ in thousands | 931,712 | 843,918 | 892,041 | 1,082,080 | 971,937 |
| Total current liabilities | US$ in thousands | 466,259 | 450,811 | 412,158 | 602,690 | 614,892 |
| Working capital turnover | 4.10 | 5.10 | 4.32 | 4.64 | 5.88 |
February 28, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,907,660K ÷ ($931,712K – $466,259K)
= 4.10
The working capital turnover for Helen of Troy Ltd has shown a varying trend over the past five years. It decreased from 5.88 in February 28, 2021, to 4.64 in February 28, 2022, indicating a decline in the company's efficiency in utilizing its working capital to generate sales.
Subsequently, the working capital turnover continued to decrease to 4.32 in February 28, 2023, suggesting a potential inefficiency in managing its working capital during that period. However, there was a slight improvement in the following year, with the ratio increasing to 5.10 in February 29, 2024.
Despite the improvement in 2024, the working capital turnover decreased again to 4.10 in February 28, 2025. This downward trend may indicate challenges in effectively utilizing the company's working capital to support its operations and generate revenue.
Overall, Helen of Troy Ltd's working capital turnover has been fluctuating, with periods of decline and slight improvement. It is crucial for the company to closely monitor and manage its working capital efficiency to ensure optimal utilization and sustainable business performance.