Manhattan Associates Inc (MANH)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	932,692	769,284	664,197	585,552	619,801
Total current assets	US$ in thousands	479,190	415,375	408,419	334,041	232,041
Total current liabilities	US$ in thousands	365,915	315,595	249,042	196,986	181,596
Working capital turnover		8.23	7.71	4.17	4.27	12.29

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $932,692K ÷ ($479,190K – $365,915K)
= 8.23

Manhattan Associates, Inc.'s working capital turnover has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In 2023, the working capital turnover ratio improved to 8.20, indicating that for every dollar of working capital investment, the company generated $8.20 in revenue. This suggests a more efficient utilization of working capital to drive sales compared to the previous year.

Conversely, in 2022, the ratio was 7.69, slightly lower than 2023 but still indicative of effective working capital management. The ratio saw a considerable increase in 2019 to 12.25, showcasing extremely efficient utilization of working capital in generating sales revenue.

However, in 2021 and 2020, the working capital turnover ratios were 4.16 and 4.28, respectively, implying a decline in efficiency in using working capital to generate revenue compared to the previous years.

Manhattan Associates should continue to monitor and improve its working capital turnover ratio to ensure optimal efficiency in managing its working capital and achieving sales growth.