Helen of Troy Ltd (HELE)
Working capital turnover
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,951,730 | 2,033,190 | 2,213,270 | 2,085,990 | 1,694,540 |
| Total current assets | US$ in thousands | 843,918 | 892,041 | 1,082,080 | 971,937 | 682,836 |
| Total current liabilities | US$ in thousands | 450,811 | 412,158 | 602,690 | 614,892 | 338,896 |
| Working capital turnover | 4.96 | 4.24 | 4.62 | 5.84 | 4.93 |
February 29, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,951,730K ÷ ($843,918K – $450,811K)
= 4.96
Helen of Troy Ltd's working capital turnover has shown fluctuations over the past five years. The ratio has ranged from 4.24 to 5.84, with the highest value recorded in 2021 and the lowest in 2023. This indicates the company's effectiveness in generating sales revenue relative to its working capital. A higher turnover ratio suggests efficient management of working capital, while a lower ratio may imply possible inefficiencies in utilizing working capital. Overall, Helen of Troy Ltd's working capital turnover has shown variability over the years, and it would be important to further investigate the underlying factors contributing to these fluctuations.