J & J Snack Foods Corp (JJSF)
Working capital turnover
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,574,195 | 1,591,295 | 1,577,096 | 1,555,214 | 1,558,807 | 1,515,372 | 1,469,840 | 1,413,499 | 1,380,643 | 1,303,210 | 1,247,323 | 1,221,979 | 1,144,477 | 1,074,048 | 964,265 | 980,132 | 1,022,046 | 1,081,059 | 1,193,204 | 1,197,472 |
| Total current assets | US$ in thousands | 450,414 | 461,144 | 420,610 | 397,279 | 430,212 | 469,203 | 434,508 | 441,310 | 444,637 | 523,739 | 584,276 | 576,046 | 584,769 | 567,384 | 530,269 | 508,655 | 499,557 | 478,941 | 482,494 | 495,146 |
| Total current liabilities | US$ in thousands | 174,073 | 203,190 | 174,595 | 165,315 | 174,944 | 187,576 | 159,111 | 160,178 | 181,839 | 198,991 | 165,716 | 158,098 | 167,629 | 159,867 | 143,197 | 132,691 | 134,126 | 127,840 | 128,057 | 134,260 |
| Working capital turnover | 5.70 | 6.17 | 6.41 | 6.70 | 6.11 | 5.38 | 5.34 | 5.03 | 5.25 | 4.01 | 2.98 | 2.92 | 2.74 | 2.64 | 2.49 | 2.61 | 2.80 | 3.08 | 3.37 | 3.32 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,574,195K ÷ ($450,414K – $174,073K)
= 5.70
The working capital turnover of J & J Snack Foods Corp has shown a positive trend over the past few quarters, indicating an improvement in the efficiency of its working capital management. The company's working capital turnover has steadily increased from 2.49 in March 2021 to 6.41 in March 2024, showcasing a significant enhancement in the utilization of its current assets and liabilities to generate sales.
This improvement suggests that J & J Snack Foods Corp has been able to more effectively convert its working capital into revenue, reflecting better liquidity management and operational efficiency. A higher working capital turnover ratio indicates that the company is able to generate more sales revenue per dollar of working capital employed, which is a positive sign for financial health and potential profitability.
Overall, the increasing trend in the working capital turnover ratio of J & J Snack Foods Corp is a favorable indication of the company's ability to efficiently utilize its current assets and liabilities to support its operations and drive revenue growth.