H&R Block Inc (HRB)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,531,780 | 3,399,780 | 3,375,510 | 3,307,770 | 2,544,680 |
| Total current assets | US$ in thousands | 1,239,480 | 1,187,490 | 1,384,460 | 1,699,720 | 3,086,740 |
| Total current liabilities | US$ in thousands | 977,328 | 938,782 | 998,813 | 1,163,080 | 1,575,620 |
| Working capital turnover | 13.47 | 13.67 | 8.75 | 6.16 | 1.68 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,531,780K ÷ ($1,239,480K – $977,328K)
= 13.47
The working capital turnover ratio of H&R Block Inc has shown a fluctuating trend over the past five years. The ratio has gradually increased from 1.68 in April 30, 2020, to 13.67 in June 30, 2023, indicating an improvement in the company's efficiency in generating revenue from its working capital. However, there was a slight decrease in the ratio to 8.75 in June 30, 2022, before rebounding to 13.47 in June 30, 2024.
A high working capital turnover ratio suggests that H&R Block Inc is effectively utilizing its working capital to generate sales revenue. This could be attributed to efficient inventory management, effective accounts receivable collections, and optimal utilization of current assets in the company's operations.
Overall, the trend in H&R Block Inc's working capital turnover reflects a positive sign of operational efficiency and effectiveness in managing its working capital to generate revenue. However, periodic fluctuations in the ratio may require further analysis to identify any underlying reasons and potential areas for improvement.
Peer comparison
Jun 30, 2024