Leslies Inc (LESL)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,378,163 | 1,403,018 | 1,453,814 | 1,527,384 | 1,535,663 | 1,531,880 | 1,467,427 | 1,389,785 | 1,351,089 | 1,299,337 | |||
| Total current assets | US$ in thousands | 392,044 | 420,286 | 536,704 | 591,718 | 508,504 | 542,378 | 632,329 | 471,876 | 375,499 | 601,711 | 608,384 | 448,326 | 340,064 |
| Total current liabilities | US$ in thousands | 204,573 | 225,830 | 315,297 | 292,391 | 254,594 | 347,956 | 432,895 | 338,187 | 254,208 | 309,713 | 352,437 | 325,761 | 191,603 |
| Working capital turnover | 7.35 | 7.22 | 6.57 | 5.10 | 6.05 | 7.88 | 7.36 | 10.40 | 11.14 | 4.45 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,378,163K ÷ ($392,044K – $204,573K)
= 7.35
Leslies Inc's working capital turnover ratio has shown fluctuations over the past years. A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales.
In the recent period, the working capital turnover ratio has been decreasing sequentially from September 2021 to March 2023, reaching its lowest point of 5.10 in March 2023. This decline may suggest that Leslies Inc's ability to generate sales from its working capital decreased during this period.
However, there was a notable spike in the working capital turnover ratio in December 2021 and March 2022, peaking at 11.14 and 10.40, respectively. This indicates a period of more efficient working capital utilization to generate sales during that time frame.
Overall, Leslies Inc should aim to maintain a balance in managing its working capital to ensure optimal efficiency in generating sales. Monitoring and possibly improving the working capital turnover ratio can contribute to the company's overall financial health and profitability.
Peer comparison
Dec 31, 2023