Heidrick & Struggles International (HSII)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,115,680 | 1,041,180 | 1,083,590 | 1,008,470 | 629,370 |
| Total current assets | US$ in thousands | 772,977 | 693,214 | 823,819 | 745,388 | 472,686 |
| Total current liabilities | US$ in thousands | 483,013 | 438,691 | 588,477 | 534,694 | 318,238 |
| Working capital turnover | 3.85 | 4.09 | 4.60 | 4.79 | 4.07 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,115,680K ÷ ($772,977K – $483,013K)
= 3.85
Heidrick & Struggles International's working capital turnover has shown variability over the past five years. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In 2020, the working capital turnover was 4.07, which means that the company generated $4.07 in revenue for every $1 of working capital invested. This ratio improved to 4.79 in 2021, suggesting an increase in operational efficiency in utilizing working capital.
However, there was a slight decline in the ratio to 4.60 in 2022, followed by a drop to 4.09 in 2023, indicating a potential decrease in efficiency in managing working capital. The most recent data point for 2024 shows a working capital turnover of 3.85, which is the lowest in the five-year period, indicating a further decrease in efficiency in utilizing working capital to generate revenue.
Overall, while Heidrick & Struggles International has shown some fluctuation in its working capital turnover ratio over the years, the company should focus on improving its management of working capital to enhance operational efficiency and optimize its financial performance in the future.
Peer comparison
Dec 31, 2024