Liquidity Services Inc (LQDT)

Working capital turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	317,498	280,423	258,046	207,151	227,988
Total current assets	US$ in thousands	146,268	129,594	131,842	94,579	89,925
Total current liabilities	US$ in thousands	120,718	123,503	109,173	74,324	68,822
Working capital turnover		12.43	46.04	11.38	10.23	10.80

September 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $317,498K ÷ ($146,268K – $120,718K)
= 12.43

The working capital turnover ratio measures how efficiently a company uses its working capital to generate sales. Liquidity Services Inc's working capital turnover has fluctuated over the past five years. In 2023, the ratio was 12.31, representing a decrease from the ratio of 45.98 in 2022. This decrease may indicate that the company's working capital was not utilized as effectively to generate sales compared to the previous year. It is worth noting that the ratio was 11.36 in 2021, 10.17 in 2020, and 10.73 in 2019, showing fluctuations in the company's ability to convert working capital into revenue. Additional analysis of the company's financial performance and working capital management practices would be needed to fully understand the reasons behind these fluctuations.