ManpowerGroup Inc (MAN)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	18,811,700	19,764,800	20,680,400	17,952,800	20,892,800
Total current assets	US$ in thousands	5,572,100	5,934,400	6,422,700	6,666,400	6,484,500
Total current liabilities	US$ in thousands	4,799,700	4,911,700	5,780,500	4,684,800	4,441,400
Working capital turnover		24.35	19.33	32.20	9.06	10.23

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,811,700K ÷ ($5,572,100K – $4,799,700K)
= 24.35

The working capital turnover for ManpowerGroup has shown fluctuations over the past five years. The ratio stood at 24.49 in 2023, indicating that for every dollar of working capital, ManpowerGroup generated $24.49 in revenue, reflecting efficient utilization of its working capital. This represents a significant increase from 2022 when the ratio was 19.39. In 2021, the ratio spiked to 32.27, suggesting a further improvement in the efficiency of working capital management. However, in 2020, the ratio dropped to 9.08, indicating a decrease in revenue generated per dollar of working capital, possibly due to operational challenges or changes in business circumstances. The ratio improved slightly in 2019 to 10.21 but remained relatively low compared to the following years.

Overall, the trend in the working capital turnover ratio for ManpowerGroup suggests varying levels of efficiency in managing working capital over the past five years, with notable fluctuations in performance. Further analysis would be required to understand the specific factors driving these changes and their implications for the company's financial health and operational effectiveness.