Dorian LPG Ltd (LPG)

Working capital turnover

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 Jun 30, 2019
Revenue (ttm) US$ in thousands 560,718 552,961 493,218 424,488 389,749 335,738 300,976 288,095 274,222 294,182 314,101 305,724 315,938 311,556 308,515 345,430 333,431 272,696 242,371 191,554
Total current assets US$ in thousands 368,882 339,329 277,409 241,462 236,299 228,058 208,248 230,235 307,893 217,458 146,288 180,917 153,343 218,187 209,420 216,062 139,615 143,824 124,471 92,874
Total current liabilities US$ in thousands 101,813 102,451 105,317 96,631 94,597 83,870 70,997 71,651 94,837 94,855 96,519 88,143 82,081 77,529 97,773 86,725 85,013 86,049 82,013 79,845
Working capital turnover 2.10 2.33 2.87 2.93 2.75 2.33 2.19 1.82 1.29 2.40 6.31 3.30 4.43 2.21 2.76 2.67 6.11 4.72 5.71 14.70

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $560,718K ÷ ($368,882K – $101,813K)
= 2.10

The working capital turnover of Dorian LPG Ltd has fluctuated over the past few quarters, indicating varying efficiencies in managing its working capital. The ratio indicates how efficiently the company is using its working capital to generate revenue.

Looking at the trend, the working capital turnover ratio was relatively stable around 2 to 3 from Mar 2020 to Dec 2022. However, there was a significant increase in efficiency in managing working capital in the first three quarters of 2021, with ratios jumping to 6.31, 3.30, and 4.43, respectively. This indicates that the company was able to generate more revenue using its working capital during this period.

The working capital turnover ratio then decreased in the subsequent quarters, particularly from Mar 2022 to Mar 2023, hovering around 1.29 to 2.75. This downtrend may suggest a decrease in efficiency in utilizing working capital during these periods.

The ratio spiked to 6.11 and 14.70 in the last two quarters of 2019, indicating a significant improvement in working capital efficiency during that time. However, the ratio has generally been more volatile since 2020.

Overall, Dorian LPG Ltd should focus on maintaining a stable and efficient working capital turnover to ensure optimal utilization of its resources in generating revenue. Further analysis of the company's working capital management practices and potential factors influencing these fluctuations would be beneficial for understanding and improving its financial performance.