Heidrick & Struggles International (HSII)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,041,180 | 1,083,590 | 1,008,470 | 629,370 | 725,614 |
| Total current assets | US$ in thousands | 693,214 | 823,819 | 745,388 | 472,686 | 494,482 |
| Total current liabilities | US$ in thousands | 438,691 | 588,477 | 534,694 | 318,238 | 345,342 |
| Working capital turnover | 4.09 | 4.60 | 4.79 | 4.07 | 4.87 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,041,180K ÷ ($693,214K – $438,691K)
= 4.09
Working capital turnover measures the efficiency at which a company utilizes its working capital to generate revenue. A higher turnover ratio indicates better efficiency in managing working capital. Heidrick & Struggles International, Inc. had a working capital turnover of 4.09 in 2023, slightly lower than the previous year's ratio of 4.60. This suggests a relative decrease in the efficiency of using working capital to generate sales revenue.
Comparing to the ratio of 4.79 in 2021 and 4.87 in 2019, the working capital turnover has shown a downward trend over the years. This decline may indicate a slowdown in sales generation relative to the company's investment in working capital. It is essential for the company to assess its working capital management strategies to improve efficiency and maximize revenue generation going forward.
Peer comparison
Dec 31, 2023