Korn Ferry (KFY)
Working capital turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,741,182 | 2,741,517 | 2,772,004 | 2,795,505 | 2,833,706 | 2,843,678 | 2,866,950 | 2,863,836 | 2,852,715 | 2,850,826 | 2,758,505 | 2,643,455 | 2,473,846 | 2,266,770 | 2,061,161 | 1,819,946 | 1,711,528 | 1,761,627 | 1,828,015 | 1,977,330 |
| Total current assets | US$ in thousands | 1,557,320 | 1,482,450 | 1,415,480 | 1,674,160 | 1,544,710 | 1,421,540 | -551,002 | 1,638,670 | 1,613,430 | 1,480,360 | 1,497,290 | 1,759,970 | 1,667,750 | 1,549,240 | 1,366,930 | 1,487,130 | 1,315,590 | 1,170,890 | 1,093,280 | 1,237,080 |
| Total current liabilities | US$ in thousands | 817,757 | 717,783 | 658,018 | 934,519 | 842,641 | 764,119 | 655,791 | 976,260 | 856,347 | 755,175 | 686,054 | 984,225 | 851,151 | 697,069 | 583,538 | 750,070 | 635,410 | 558,911 | 491,331 | 624,207 |
| Working capital turnover | 3.71 | 3.59 | 3.66 | 3.78 | 4.04 | 4.33 | — | 4.32 | 3.77 | 3.93 | 3.40 | 3.41 | 3.03 | 2.66 | 2.63 | 2.47 | 2.52 | 2.88 | 3.04 | 3.23 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,741,182K ÷ ($1,557,320K – $817,757K)
= 3.71
The analysis of Korn Ferry’s working capital turnover ratio over the specified period reveals a pattern of fluctuation characterized by initial declines followed by gradual stabilization and subsequent increases.
From April 2020 to October 2020, the ratio experienced a slight decrease from 3.23 to 2.88, indicating that the company was utilizing its working capital slightly less efficiently during this period. This trend persisted into January 2021, with the ratio declining further to 2.52. Such decreases could be attributed to various factors, including changes in receivables, payables, inventories, or a combination thereof, potentially driven by the economic impacts of the COVID-19 pandemic.
However, starting from April 2021, a reversal in trend is observed. The ratio increased from 2.47 to 2.66 by October 2021, reflecting a modest improvement in operational efficiency concerning working capital utilization. This upward movement continued through 2022, with the ratio climbing notably to 3.93 by October 2022, and further advancing to 4.32 in April 2023. The peak during this period suggests enhanced management of working capital components or changes in revenue and expense cycles, leading to more effective deployment of working capital.
Subsequently, the ratio remains relatively stable with minor fluctuations, maintaining levels around 3.66 to 4.33 through October 2023 and into 2024. Such stability indicates a maintained level of operational efficiency in managing working capital, although slight declines and increases suggest ongoing adjustments in working capital management strategies.
Overall, the working capital turnover ratio demonstrates a historical low during the initial pandemic period, followed by notable improvements, reaching high levels indicative of efficient working capital utilization. The recent trajectory shows a sustained higher ratio, implying a consistent pattern of effective working capital management in recent years.
Peer comparison
Jan 31, 2025