Manhattan Associates Inc (MANH)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,048,890 932,692 769,284 664,197 585,552
Total current assets US$ in thousands 503,264 479,190 415,375 408,419 334,041
Total current liabilities US$ in thousands 400,304 365,915 315,595 249,042 196,986
Working capital turnover 10.19 8.23 7.71 4.17 4.27

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,048,890K ÷ ($503,264K – $400,304K)
= 10.19

The working capital turnover of Manhattan Associates Inc has shown a mixed trend over the past five years.

In 2020, the working capital turnover was 4.27, indicating that the company generated $4.27 in revenue for every dollar of working capital. This ratio decreased slightly to 4.17 in 2021, suggesting a slight decrease in efficiency in utilizing working capital.

However, there was a significant improvement in 2022, with the working capital turnover jumping to 7.71. This sharp increase indicates that the company was able to generate more revenue relative to its working capital, showcasing improved efficiency in managing its working capital.

The trend continued to improve in 2023 and 2024, with working capital turnovers of 8.23 and 10.19, respectively. These numbers indicate a consistent and significant improvement in the company's ability to generate revenue from its working capital, reflecting strong management of working capital efficiency.

Overall, the increasing trend in working capital turnover over the years suggests that Manhattan Associates Inc has been successful in enhancing its efficiency in utilizing working capital to generate revenue.