Manhattan Associates Inc (MANH)

Working capital turnover

Dec 31, 2024 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
Revenue (ttm) US$ in thousands 1,049,306 1,029,374 1,001,134 966,832 932,473 886,637 846,297 807,205 766,825 740,588 711,672 685,862 663,650 639,619 620,191 589,707 587,495 593,342 605,860 624,571
Total current assets US$ in thousands 503,264 452,313 426,146 445,206 479,190 392,859 360,019 371,504 415,375 366,695 374,552 377,270 408,419 385,667 347,232 330,051 334,041 288,388 251,759 216,955
Total current liabilities US$ in thousands 400,304 362,243 362,710 372,020 365,915 332,826 330,609 322,753 315,595 283,970 271,226 257,048 249,042 232,862 216,861 206,738 196,986 185,089 183,421 176,188
Working capital turnover 10.19 11.43 15.78 13.21 8.23 14.77 28.78 16.56 7.69 8.95 6.89 5.70 4.16 4.19 4.76 4.78 4.29 5.74 8.87 15.32

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,049,306K ÷ ($503,264K – $400,304K)
= 10.19

Manhattan Associates Inc's working capital turnover has shown fluctuations over the period between March 31, 2020, and December 31, 2024. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

The trend in Manhattan Associates Inc's working capital turnover indicates a decrease from a high of 15.32 on March 31, 2020, to a low of 4.16 on December 31, 2021. This significant decline suggests a potential inefficiency in the utilization of working capital during this period.

However, there seems to be a recovery in the efficiency of working capital utilization as the ratio gradually increases from March 31, 2022, reaching a peak of 28.78 on June 30, 2023. This spike could indicate an improvement in managing working capital to support higher sales levels or optimize operations.

Subsequently, there is a reduction in the working capital turnover ratio to 10.19 on December 31, 2024. This decline might imply a possible decrease in sales relative to the working capital invested, signaling a need for further evaluation of the company's working capital management strategies.

Overall, Manhattan Associates Inc's working capital turnover ratio displays variability over the period, indicating fluctuations in the efficiency of working capital utilization in generating sales revenue. It is essential for the company to monitor this ratio continually to ensure optimal management of working capital for sustainable business operations.