Lancaster Colony Corporation (LANC)
Working capital turnover
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,871,715 | 1,873,707 | 1,867,196 | 1,858,674 | 1,822,639 | 1,820,249 | 1,758,808 | 1,709,841 | 1,676,360 | 1,609,326 | 1,563,081 | 1,509,669 | 1,466,850 | 1,402,355 | 1,366,451 | 1,346,534 | 1,334,351 | 1,337,167 | 1,333,704 | 1,328,187 |
| Total current assets | US$ in thousands | 443,993 | 440,731 | 405,399 | 386,258 | 374,463 | 391,560 | 373,636 | 377,801 | 351,781 | 361,579 | 389,407 | 409,856 | 423,481 | 428,260 | 426,264 | 408,407 | 385,612 | 381,975 | 380,273 | 368,651 |
| Total current liabilities | US$ in thousands | 183,969 | 189,786 | 163,376 | 167,208 | 168,752 | 196,451 | 180,171 | 190,915 | 165,585 | 179,477 | 172,832 | 179,787 | 173,923 | 151,983 | 140,628 | 139,819 | 126,259 | 137,146 | 133,286 | 136,573 |
| Working capital turnover | 7.20 | 7.47 | 7.71 | 8.49 | 8.86 | 9.33 | 9.09 | 9.15 | 9.00 | 8.84 | 7.22 | 6.56 | 5.88 | 5.08 | 4.78 | 5.01 | 5.14 | 5.46 | 5.40 | 5.72 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,871,715K ÷ ($443,993K – $183,969K)
= 7.20
Lancaster Colony Corporation's working capital turnover has shown a general upward trend over the past two years, indicating an improvement in their efficiency in utilizing working capital. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.
The company's working capital turnover has consistently been above 5 in the past two years, which indicates that Lancaster Colony Corporation is effectively using its current assets to support its sales activities.
From December 2021 to June 2023, there was a significant increase in the working capital turnover ratio, reaching a peak of 9.33 in March 2023. This could suggest improved management of working capital during this period, resulting in increased sales relative to the level of investment in current assets.
It is worth noting that the working capital turnover ratio experienced a slight decline in the most recent quarters from June 2023 to June 2024, but still remains relatively high compared to historical data. This could imply a potential decrease in efficiency in utilizing working capital to drive sales during this period.
Overall, the trend in Lancaster Colony Corporation's working capital turnover indicates that the company has been efficient in managing its working capital to support its sales activities, with some fluctuations observed in recent quarters.
Peer comparison
Jun 30, 2024