Leslies Inc (LESL)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 1,385,770 | 1,531,880 | 1,299,340 |
| Total current assets | US$ in thousands | 420,286 | 542,378 | 601,711 |
| Total current liabilities | US$ in thousands | 225,830 | 347,956 | 309,713 |
| Working capital turnover | 7.13 | 7.88 | 4.45 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,385,770K ÷ ($420,286K – $225,830K)
= 7.13
The working capital turnover ratio for Leslies Inc has shown a declining trend over the three-year period from September 30, 2021, to September 30, 2023. The ratio decreased from 4.45 in 2021 to 7.88 in 2022 and further to 7.13 in 2023. This indicates that the company's efficiency in utilizing its working capital to generate sales revenue has slightly weakened over the years. A higher working capital turnover ratio is generally preferred as it signifies that the company can convert its working capital into sales at a faster rate. Leslies Inc may need to assess its working capital management strategies to enhance its operational efficiency and maximize its sales potential.
Peer comparison
Sep 30, 2023