Liquidity Services Inc (LQDT)

Working capital turnover

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 Mar 31, 2020 Dec 31, 2019
Revenue (ttm) US$ in thousands 367,189 340,090 327,239 317,224 317,482 311,747 299,959 286,259 280,398 275,343 275,513 269,007 258,140 243,702 221,755 213,011 206,885 209,785 219,114 223,264
Total current assets US$ in thousands 199,235 173,225 151,438 137,963 146,268 134,902 130,577 113,638 129,594 120,340 112,172 120,485 131,842 139,505 114,905 100,871 94,579 94,930 75,846 70,523
Total current liabilities US$ in thousands 155,153 143,251 133,166 107,096 120,718 120,194 124,047 105,437 123,503 126,891 132,586 125,021 109,173 109,998 98,413 77,293 74,324 80,236 65,341 57,261
Working capital turnover 8.33 11.35 17.91 10.28 12.43 21.20 45.94 34.91 46.03 — — — 11.39 8.26 13.45 9.03 10.21 14.28 20.86 16.83

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $367,189K ÷ ($199,235K – $155,153K)
= 8.33

Liquidity Services Inc's working capital turnover ratio has shown fluctuations over the periods analyzed. The ratio indicates the efficiency with which the company is utilizing its working capital to generate revenue.

In the most recent period, the working capital turnover ratio was 8.33, which suggests that the company generated $8.33 in revenue for every dollar of working capital invested. This ratio has decreased from the previous quarter, indicating a potential decrease in efficiency in utilizing working capital.

Looking back over the historical data, there have been significant variations in the working capital turnover ratio, with peaks observed in March 2023 (45.94) and December 2022 (46.03), indicating high efficiencies in capital utilization during those periods. However, there have also been periods of lower efficiency, such as in March 2021 (13.45) and September 2020 (10.21).

Overall, it is crucial for Liquidity Services Inc to consistently monitor and manage its working capital turnover ratio to ensure optimal utilization of resources and maximize revenue generation. Further analysis of the underlying factors contributing to these fluctuations would be necessary to determine the drivers behind the changes in efficiency over time.