Liquidity Services Inc (LQDT)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	367,205	317,498	280,423	258,046	207,151
Total current assets	US$ in thousands	199,235	146,268	129,594	131,842	94,579
Total current liabilities	US$ in thousands	155,153	120,718	123,503	109,173	74,324
Working capital turnover		8.33	12.43	46.04	11.38	10.23

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $367,205K ÷ ($199,235K – $155,153K)
= 8.33

The working capital turnover ratio for Liquidity Services Inc has shown significant fluctuation over the past five years. In 2024, the ratio stood at 8.33, indicating that the company generated $8.33 in revenue for every dollar of working capital invested. This represents a decrease from the previous year when the ratio was 12.43.

Looking back to 2022, the working capital turnover was exceptionally high at 46.04, suggesting that the company efficiently utilized its working capital to generate sales revenue. In contrast, the ratios for 2021 and 2020 were 11.38 and 10.23, respectively, indicating a more stable performance in turning working capital into sales during those years.

The varying trends in the working capital turnover ratio for Liquidity Services Inc may reflect changes in the company's operating and financial efficiency over the years. It would be advisable for stakeholders to further investigate the underlying factors contributing to these fluctuations to gain a deeper understanding of the company's financial performance and effectiveness in managing its working capital.