Insteel Industries Inc (IIIN)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 529,198 | 649,188 | 826,832 | 590,601 | 472,618 |
| Total current assets | US$ in thousands | 267,294 | 298,853 | 335,332 | 246,906 | 197,038 |
| Total current liabilities | US$ in thousands | 47,034 | 46,155 | 62,596 | 68,849 | 53,678 |
| Working capital turnover | 2.40 | 2.57 | 3.03 | 3.32 | 3.30 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $529,198K ÷ ($267,294K – $47,034K)
= 2.40
The working capital turnover ratio measures how effectively a company is using its working capital to generate sales revenue. A higher ratio suggests efficient management of working capital.
Insteel Industries Inc's working capital turnover has decreased from 3.30 in 2020 to 2.40 in 2024. This decline indicates that the company is now less efficient in utilizing its working capital to support sales activities.
The decreasing trend may raise concerns about the company's ability to efficiently manage its current assets and liabilities to support its sales operations. Further analysis is needed to understand the factors contributing to this decline and to determine if it is indicative of underlying operational or financial challenges within Insteel Industries Inc.
Peer comparison
Sep 30, 2024