Lancaster Colony Corporation (LANC)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,871,720 | 1,822,640 | 1,676,360 | 1,466,850 | 1,334,000 |
| Total current assets | US$ in thousands | 443,993 | 374,463 | 351,781 | 423,481 | 385,612 |
| Total current liabilities | US$ in thousands | 183,969 | 168,752 | 165,585 | 173,923 | 126,259 |
| Working capital turnover | 7.20 | 8.86 | 9.00 | 5.88 | 5.14 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,871,720K ÷ ($443,993K – $183,969K)
= 7.20
The working capital turnover of Lancaster Colony Corporation has demonstrated fluctuations over the past five years. In the most recent fiscal year ending June 30, 2024, the company's working capital turnover decreased to 7.20 from 8.86 in the previous year, indicating that the company generated $7.20 in net revenue for every $1 of working capital. This decrease may suggest inefficiencies in managing its working capital or potential challenges in converting its current assets into revenue.
Comparing this year's figure to the five-year trend, it appears that the working capital turnover has generally been above 5, indicating efficient utilization of working capital in generating revenue. The peak in the working capital turnover was observed in the fiscal year ending June 30, 2022, at 9.00, which implies that the company was highly effective in generating sales from its working capital during that period.
Overall, the fluctuation in working capital turnover for Lancaster Colony Corporation suggests varying levels of efficiency in utilizing its working capital to generate revenue over the past five years. Further analysis would be needed to understand the underlying factors driving these changes and to assess the company's overall financial performance and liquidity position.
Peer comparison
Jun 30, 2024