Dorian LPG Ltd (LPG)
Working capital turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 353,341 | 560,717 | 389,749 | 274,221 | 315,939 |
| Total current assets | US$ in thousands | — | 368,882 | 307,893 | 153,343 | 139,615 |
| Total current liabilities | US$ in thousands | — | 101,813 | 94,837 | 82,081 | 85,013 |
| Working capital turnover | — | 2.10 | 1.83 | 3.85 | 5.79 |
March 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $353,341K ÷ ($—K – $—K)
= —
Dorian LPG Ltd's working capital turnover has exhibited a declining trend over the years based on the provided data. From 2021 to 2025, the working capital turnover decreased from 5.79 to 2.10. This indicates that the company is efficiently utilizing its working capital to generate revenue and support its operations, with a lower turnover implying that the working capital is tied up for a longer period before being converted into sales.
The significant drop in the working capital turnover from 2021 to 2023 suggests potential inefficiencies in managing the company's working capital during this period. However, there was a slight improvement in 2024, but the ratio still remained below the initial level observed in 2021.
It is important for Dorian LPG Ltd to closely monitor and manage its working capital turnover to ensure optimal utilization of its resources and maintain the necessary liquidity levels to sustain its operations effectively in the long term.