Jacobs Solutions Inc. (J)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,675,600 | 16,377,400 | 15,085,600 | 14,240,900 | 13,518,700 |
| Total current assets | US$ in thousands | 4,895,580 | 4,690,350 | 4,721,990 | 4,291,900 | 4,539,600 |
| Total current liabilities | US$ in thousands | 4,079,740 | 3,422,560 | 3,250,840 | 3,209,920 | 2,941,600 |
| Working capital turnover | 14.31 | 12.92 | 10.25 | 13.16 | 8.46 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,675,600K ÷ ($4,895,580K – $4,079,740K)
= 14.31
Jacobs Solutions Inc.'s working capital turnover has shown a consistent upward trend over the past five years, from 8.46 in 2020 to 14.31 in 2024. This indicates that the company is efficiently utilizing its working capital to generate revenue. Higher values for working capital turnover are generally favorable as they suggest that the company is able to generate more sales revenue for each dollar of working capital invested.
The substantial increase in working capital turnover from 2020 to 2024 highlights the company's improved efficiency in managing its working capital resources to support its operations. This trend indicates that Jacobs Solutions Inc. has been able to ramp up its revenue generation relative to the level of its working capital, potentially due to improved inventory management, accounts receivable collection, or payable terms.
Overall, the increasing trend in working capital turnover for Jacobs Solutions Inc. signals effective working capital management, which is crucial for the company's operational efficiency and financial health.
Peer comparison
Sep 30, 2024