Innovex International, Inc (INVX)

Working capital turnover

		Jun 30, 2025	Mar 31, 2025	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
Revenue (ttm)	US$ in thousands	867,153	763,261	633,143	508,800	474,227	443,492	424,060	394,530	365,427	369,798	362,070	343,168	338,024	324,843	322,945	332,267	340,565	350,214	364,973	386,192
Total current assets	US$ in thousands	670,105	632,638	641,391	677,332	707,550	715,145	719,717	295,686	755,156	752,111	752,588	745,758	747,863	717,376	745,549	827,271	849,286	844,721	863,193	863,002
Total current liabilities	US$ in thousands	145,745	145,819	162,658	174,805	126,429	133,556	117,703	103,143	88,124	83,360	87,555	89,287	84,856	70,321	93,663	91,826	106,535	95,307	85,512	100,982
Working capital turnover		1.65	1.57	1.32	1.01	0.82	0.76	0.70	2.05	0.55	0.55	0.54	0.52	0.51	0.50	0.50	0.45	0.46	0.47	0.47	0.51

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $867,153K ÷ ($670,105K – $145,745K)
= 1.65

The working capital turnover ratio for Innovex International, Inc. demonstrates notable fluctuations over the observed period from September 2020 to June 2025. Initially, during the period ending September 30, 2020, the ratio was approximately 0.51, indicating that the company's sales were generated roughly half of its working capital investment. Throughout 2020 and into early 2021, the ratio remained relatively stable, oscillating narrowly around 0.45 to 0.50, suggesting consistent efficiency in utilizing working capital to generate sales.

A slight decline is observable moving into 2021, with the ratio decreasing to approximately 0.45-0.50, which may reflect either increased working capital levels or a temporary dip in sales efficiency. Notably, the ratio resumes a steady upward trajectory starting in late 2021 and into 2022, reaching a level near 0.52-0.55 by mid-2022 and early 2023, indicating incremental improvements in the efficiency of working capital utilization.

However, a significant shift occurs in the latter part of 2023. The ratio jumps sharply to 2.05 at September 30, 2023, more than tripling previous levels. This anomaly suggests a substantial change in either sales performance, working capital management, or both. Such a rapid increase often signals improved efficiency, possibly driven by increased sales volume, reduced working capital, or a combination thereof.

Following this peak, the ratio declines markedly in the subsequent quarters, decreasing to 0.70 by December 2023, then gradually rising again to 1.01 by September 2024. This fluctuation indicates a possible adjustment period post-peak, with balancing of operations and working capital levels.

From September 2024 onward, a consistent upward trend resumes, with the ratio progressing from 1.01 to 1.65 by June 2025. This sustained increase suggests ongoing improvements in operational efficiency, enabling the company to generate higher sales relative to its working capital investment over time.

In summary, the company’s working capital turnover ratio remained relatively stable at lower levels for the initial years, reflecting steady but modest efficiency. The sharp spike in late 2023 indicates a period of notably heightened operational effectiveness, followed by normalization and a subsequent steady improvement, signaling enhanced management of working capital to support increased sales generation in the latter years.