Heidrick & Struggles International (HSII)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,041,182 | 1,022,461 | 1,012,836 | 1,040,168 | 1,083,586 | 1,132,110 | 1,139,154 | 1,099,280 | 1,008,474 | 883,468 | 762,654 | 649,254 | 629,370 | 651,832 | 693,849 | 724,187 | 725,614 | 731,932 | 737,755 | 747,271 |
| Total current assets | US$ in thousands | 693,214 | 613,174 | 523,335 | 446,332 | 823,819 | 720,116 | 628,025 | 535,602 | 745,388 | 594,916 | 470,604 | 369,775 | 472,686 | 415,051 | 469,994 | 445,409 | 494,482 | 424,030 | 350,440 | 309,929 |
| Total current liabilities | US$ in thousands | 438,691 | 391,967 | 318,793 | 260,174 | 588,477 | 518,604 | 434,202 | 339,719 | 534,694 | 425,046 | 317,794 | 217,270 | 318,238 | 267,666 | 222,034 | 207,946 | 345,342 | 296,241 | 235,314 | 216,619 |
| Working capital turnover | 4.09 | 4.62 | 4.95 | 5.59 | 4.60 | 5.62 | 5.88 | 5.61 | 4.79 | 5.20 | 4.99 | 4.26 | 4.07 | 4.42 | 2.80 | 3.05 | 4.87 | 5.73 | 6.41 | 8.01 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,041,182K ÷ ($693,214K – $438,691K)
= 4.09
Heidrick & Struggles International, Inc.'s working capital turnover has displayed varying trends over the last eight quarters. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively managing its working capital.
From Q1 2022 to Q4 2022, we observe a consistent increase in the working capital turnover ratio from 5.61 to 5.62. However, in Q1 2023, there was a significant decrease to 4.09, which indicates a possible inefficiency in working capital management during that quarter.
Subsequently, there was a gradual improvement in the working capital turnover ratio from Q1 2023 to Q3 2023, reaching a peak of 4.62 in Q3 2023. This indicates an enhanced efficiency in utilizing working capital during this period.
However, in Q4 2023, there was another decline in the working capital turnover ratio to 4.09. Despite this decrease, the ratio remained above the levels observed in Q1 2022 and Q4 2022, suggesting that the company's working capital management was still relatively efficient compared to those earlier periods.
Overall, the trend in Heidrick & Struggles International, Inc.'s working capital turnover signifies fluctuations in efficiency in utilizing working capital over the last eight quarters, with improvements observed in certain periods but accompanied by occasional declines. This ratio should be considered alongside other financial metrics to gain a more comprehensive understanding of the company's financial performance and management effectiveness.
Peer comparison
Dec 31, 2023