Jacobs Solutions Inc. (J)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,377,400 | 15,085,600 | 14,240,900 | 13,518,700 | 12,737,900 |
| Total current assets | US$ in thousands | 4,690,350 | 4,721,990 | 4,291,900 | 4,539,600 | 4,111,770 |
| Total current liabilities | US$ in thousands | 3,422,560 | 3,250,840 | 3,209,920 | 2,941,600 | 3,073,710 |
| Working capital turnover | 12.92 | 10.25 | 13.16 | 8.46 | 12.27 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $16,377,400K ÷ ($4,690,350K – $3,422,560K)
= 12.92
Jacobs Solutions Inc. has shown fluctuating working capital turnover ratios over the past five years. The working capital turnover ratio indicates how efficiently the company is using its working capital to generate revenue.
The working capital turnover ratio has increased from 8.46 in 2020 to 12.92 in 2023, which suggests an improvement in the efficiency of Jacobs Solutions Inc. in utilizing its working capital resources to generate sales. This could signify better management of inventory, accounts receivable, and accounts payable.
However, the ratio fluctuated between 2020 and 2023, reaching a peak of 13.16 in 2021 before decreasing to 10.25 in 2022. This fluctuation may indicate changes in the company's operation or market conditions that affected its working capital management.
Overall, an upward trend in the working capital turnover ratio is generally considered positive as it indicates that Jacobs Solutions Inc. is improving its efficiency in utilizing working capital to support its business operations and generate sales. However, further analysis of the company's financial performance and operational strategies would be needed to fully assess the implications of these fluctuations.
Peer comparison
Sep 30, 2023