Helen of Troy Ltd (HELE)
Working capital turnover
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,907,481 | 1,910,967 | 1,929,875 | 1,947,217 | 2,005,226 | 2,000,432 | 2,009,424 | 2,039,261 | 2,072,667 | 2,170,104 | 2,236,382 | 2,190,210 | 2,223,355 | 2,150,710 | 2,163,563 | 2,219,187 | 2,098,799 | 2,031,789 | 1,868,789 | 1,751,932 |
| Total current assets | US$ in thousands | 931,712 | 996,308 | 900,635 | 831,563 | 843,918 | 956,438 | 888,692 | 856,057 | 892,041 | 1,122,400 | 1,237,820 | 1,176,500 | 1,082,080 | 1,164,990 | 1,091,770 | 1,056,070 | 971,937 | 1,090,070 | 951,918 | 757,036 |
| Total current liabilities | US$ in thousands | 466,259 | 517,772 | 508,696 | 427,675 | 450,811 | 543,716 | 472,395 | 440,791 | 412,158 | 522,702 | 583,111 | 603,335 | 602,690 | 625,308 | 600,235 | 571,735 | 614,892 | 598,505 | 500,335 | 365,929 |
| Working capital turnover | 4.10 | 3.99 | 4.92 | 4.82 | 5.10 | 4.85 | 4.83 | 4.91 | 4.32 | 3.62 | 3.42 | 3.82 | 4.64 | 3.99 | 4.40 | 4.58 | 5.88 | 4.13 | 4.14 | 4.48 |
February 28, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,907,481K ÷ ($931,712K – $466,259K)
= 4.10
The working capital turnover ratio measures the efficiency with which a company utilizes its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital.
Based on the data provided for Helen of Troy Ltd, the working capital turnover ratio has fluctuated over the reporting periods. The ratio ranged from a low of 3.42 on August 31, 2022, to a high of 5.88 on February 28, 2021. Generally, a ratio above 1 indicates that the company is able to generate sales revenue more than once using its working capital within a given period.
It is observed that there were periods of improvement in the efficiency of working capital management, such as the peak ratio of 5.88 on February 28, 2021, and subsequent periods where the ratio remained relatively stable above 4. However, there were also periods of decline, as seen in the lower ratios around November 30, 2022, and August 31, 2023.
Overall, the working capital turnover for Helen of Troy Ltd has shown fluctuations, indicating variations in the company's ability to generate sales from its working capital. Monitoring this ratio over time can provide insights into the company's operational efficiency and financial performance.