Korn Ferry (KFY)
Working capital turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,799,650 | 2,867,070 | 2,644,490 | 1,820,490 | 1,977,630 |
| Total current assets | US$ in thousands | 1,674,160 | 1,638,670 | 1,759,970 | 1,487,130 | 1,237,080 |
| Total current liabilities | US$ in thousands | 934,519 | 976,260 | 984,225 | 750,070 | 624,207 |
| Working capital turnover | 3.79 | 4.33 | 3.41 | 2.47 | 3.23 |
April 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,799,650K ÷ ($1,674,160K – $934,519K)
= 3.79
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital.
Looking at Korn Ferry's working capital turnover over the past five years, there has been some fluctuation. In 2024, the working capital turnover decreased to 3.79 from 4.33 in 2023. This decrease suggests that the company may have experienced challenges in efficiently utilizing its working capital to generate sales revenue. However, it remains above the levels seen in 2021 and 2020, indicating an overall improvement in managing working capital efficiency.
It is important for Korn Ferry to closely monitor its working capital turnover to ensure optimal utilization of working capital resources and improve operational efficiency. Additional analysis of the company's working capital components and overall business operations may provide further insights into the factors influencing the changes in the working capital turnover ratio over the years.
Peer comparison
Apr 30, 2024