Heidrick & Struggles International (HSII)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,115,676 | 1,092,180 | 1,077,261 | 1,068,161 | 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 |
| Total current assets | US$ in thousands | 772,977 | 683,084 | 563,419 | 512,032 | 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 |
| Total current liabilities | US$ in thousands | 483,013 | 395,391 | 306,749 | 251,878 | 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 |
| Working capital turnover | 3.85 | 3.80 | 4.20 | 4.11 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,115,676K ÷ ($772,977K – $483,013K)
= 3.85
The working capital turnover of Heidrick & Struggles International has displayed a fluctuating trend over the analyzed period. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.
At the start of the period on March 31, 2020, the working capital turnover stood at 3.05, suggesting that the company turned over its working capital 3.05 times during that period. The ratio then decreased to 2.80 by June 30, 2020, signaling a slight slowdown in working capital efficiency.
However, the trend reversed positively by the following quarter, with the ratio jumping to 4.42 on September 30, 2020. This substantial increase indicates a significant improvement in working capital management. Heidrick & Struggles International continued to maintain relatively high working capital turnover ratios through the end of 2023, with ratios ranging from 4.09 to 5.88, showing consistent efficiency in utilizing its working capital.
Toward the end of the analyzed period, the working capital turnover ratio fluctuated slightly, with values decreasing to around 3.80 to 4.20. Despite the minor decline, Heidrick & Struggles International generally sustained a good level of working capital turnover, implying effective working capital management practices.
Overall, the company's working capital turnover ratios demonstrate a mix of fluctuations but generally reflect a positive trend in efficiently utilizing its working capital to generate revenue over the analyzed period.
Peer comparison
Dec 31, 2024