Leslies Inc (LESL)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,330,120 | 1,385,770 | 1,531,880 | 1,299,340 |
| Total current assets | US$ in thousands | 422,434 | 420,286 | 542,378 | 601,711 |
| Total current liabilities | US$ in thousands | 246,919 | 225,830 | 347,956 | 309,713 |
| Working capital turnover | 7.58 | 7.13 | 7.88 | 4.45 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,330,120K ÷ ($422,434K – $246,919K)
= 7.58
Leslies Inc has shown a consistent improvement in its working capital turnover ratio over the past four years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.
In 2021, Leslies had a working capital turnover ratio of 4.45, indicating that for every dollar of working capital invested, the company generated $4.45 in sales revenue. The company's efficiency in utilizing its working capital improved significantly in the subsequent years, reaching 7.58 in 2024. This implies that Leslies has been able to generate $7.58 in sales revenue for every dollar of working capital invested in the latest fiscal year.
The consistent increase in the working capital turnover ratio suggests that Leslies has been able to manage its working capital more effectively over the years, resulting in higher sales generated per unit of working capital. This improvement indicates a positive trend in the company's operational efficiency and could potentially lead to better financial performance in the future.
Peer comparison
Sep 30, 2024