J & J Snack Foods Corp (JJSF)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,574,760 | 1,558,810 | 1,380,640 | 1,144,480 | 1,022,040 |
| Total current assets | US$ in thousands | 450,414 | 430,212 | 444,637 | 584,769 | 499,557 |
| Total current liabilities | US$ in thousands | 174,073 | 174,944 | 181,839 | 167,629 | 134,126 |
| Working capital turnover | 5.70 | 6.11 | 5.25 | 2.74 | 2.80 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,574,760K ÷ ($450,414K – $174,073K)
= 5.70
The working capital turnover of J & J Snack Foods Corp has fluctuated over the past five years. In the fiscal year ending on September 30, 2024, the working capital turnover was 5.70, indicating that the company generated $5.70 in revenue for every dollar of working capital invested. This represents a slight decrease from the previous year's ratio of 6.11.
Compared to the ratios in earlier years, the working capital turnover was higher in 2024 and 2023, suggesting that the company was more efficient in utilizing its working capital to generate sales during those periods. The ratios from 2021 and 2020 were lower at 2.74 and 2.80, respectively, indicating lower efficiency in utilizing working capital to generate revenue.
Overall, a higher working capital turnover ratio indicates that the company is effectively managing its working capital and generating revenue efficiently. However, it is also important to consider the industry norms and benchmarks to evaluate the company's performance accurately.