Dorian LPG Ltd (LPG)

Working capital turnover

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Revenue (ttm) US$ in thousands 353,341 418,845 501,243 563,508 560,718 552,961 493,218 424,488 389,749 335,698 300,976 288,095 274,222 294,222 314,101 305,724 315,938 311,556 308,515 345,430
Total current assets US$ in thousands 382,356 415,151 439,524 465,547 368,882 339,329 277,409 230,235 236,299 228,058 208,248 230,235 307,893 217,458 146,288 180,917 153,343 218,187 209,420 216,062
Total current liabilities US$ in thousands 107,884 104,624 104,038 101,231 101,813 102,451 105,317 71,651 94,597 83,870 70,997 71,651 94,837 94,855 96,519 88,143 82,081 77,529 97,773 86,725
Working capital turnover 1.29 1.35 1.49 1.55 2.10 2.33 2.87 2.68 2.75 2.33 2.19 1.82 1.29 2.40 6.31 3.30 4.43 2.21 2.76 2.67

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $353,341K ÷ ($382,356K – $107,884K)
= 1.29

The working capital turnover ratio for Dorian LPG Ltd has shown fluctuations over the period from June 30, 2020, to March 31, 2025. The ratio indicates how efficiently the company is managing its working capital to generate sales.

Initially, from June 30, 2020, to March 31, 2021, there was a steady increase in the working capital turnover ratio, reaching a peak of 4.43 on March 31, 2021, suggesting that the company was effectively utilizing its working capital to generate revenue.

However, from June 30, 2021, to December 31, 2024, there was a downward trend in the working capital turnover ratio, indicating a potential decrease in the efficiency of working capital management. This decline could raise concerns about the company's ability to generate sales efficiently using its current level of working capital.

The ratio fluctuated between 1.29 to 3.30 between March 31, 2021, and June 30, 2024, before dropping to 1.29 on March 31, 2025. This significant decrease in the ratio may signal a potential issue with managing working capital effectively.

Overall, continuous monitoring and analysis of the working capital turnover ratio will be important for Dorian LPG Ltd to ensure efficient utilization of working capital and to drive sustainable growth in the future.