Liquidity Services Inc (LQDT)

Working capital turnover

		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	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	227,760	221,675	214,955
Total current assets	US$ in thousands	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	89,925	90,849	93,495
Total current liabilities	US$ in thousands	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	68,822	67,531	63,801
Working capital turnover		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	10.79	9.51	7.24

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $317,224K ÷ ($137,963K – $107,096K)
= 10.28

The working capital turnover for Liquidity Services Inc has fluctuated over the past eight quarters. The ratio reached its peak in Q2 2023 at 45.76, indicating that the company generated $45.76 in revenue for every dollar of working capital invested. This implies efficient utilization of working capital resources to generate sales during that period.

Subsequently, the working capital turnover decreased in Q3 2023 to 21.06 and further dropped in Q4 2023 to 12.31. These declines suggest a potential decrease in revenue relative to working capital, which may indicate inefficiencies in managing working capital to drive sales growth.

In Q1 2024, the working capital turnover improved to 10.16 but remained below the levels seen in Q2 2023, indicating that the company may still be working on optimizing its working capital efficiency.

The absence of data for Q3 and Q4 of 2022 makes it challenging to assess the trend comprehensively. However, based on the available data, Liquidity Services Inc should continue monitoring and managing its working capital turnover to ensure optimal utilization of resources and maximize revenue generation.