Helen of Troy Ltd (HELE)
Working capital turnover
| 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 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,951,649 | 1,945,114 | 1,954,029 | 1,988,120 | 2,032,319 | 2,141,123 | 2,217,356 | 2,177,293 | 2,210,480 | 2,138,035 | 2,151,168 | 2,207,303 | 2,086,058 | 2,022,215 | 1,859,374 | 1,742,097 | 1,698,141 | 1,640,619 | 1,596,759 | 1,576,773 |
| Total current assets | US$ in thousands | 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 | 682,836 | 729,239 | 711,371 | 635,994 |
| Total current liabilities | US$ in thousands | 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 | 338,896 | 317,899 | 317,857 | 289,058 |
| Working capital turnover | 4.96 | 4.71 | 4.69 | 4.79 | 4.24 | 3.57 | 3.39 | 3.80 | 4.61 | 3.96 | 4.38 | 4.56 | 5.84 | 4.11 | 4.12 | 4.45 | 4.94 | 3.99 | 4.06 | 4.54 |
February 29, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,951,649K ÷ ($843,918K – $450,811K)
= 4.96
Helen of Troy Ltd's working capital turnover has shown fluctuations over the past 20 reported periods. The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to support sales activities.
From February 2019 to February 2020, the working capital turnover ratio ranged from 3.99 to 4.96, with an increase in efficiency seen in recent periods. The ratio peaked in February 2024 at 4.96, indicating an improvement in the company's ability to convert working capital into sales.
Although there have been fluctuations in the ratio, the trend appears to be generally positive, with an overall increase in efficiency in recent periods. This suggests that Helen of Troy Ltd has been managing its working capital effectively to support its sales growth and operational activities.
It is important for the company to continue monitoring and optimizing its working capital turnover to ensure efficient use of resources and maximize profitability.