Manhattan Associates Inc (MANH)

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	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	617,562	608,999	589,075	576,605
Total current assets	US$ in thousands	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	232,041	241,595	239,557	231,296
Total current liabilities	US$ in thousands	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	181,596	182,494	169,132	165,534
Working capital turnover		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	12.24	10.30	8.36	8.77

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $932,473K ÷ ($479,190K – $365,915K)
= 8.23

The working capital turnover ratio for Manhattan Associates, Inc. has shown fluctuations over the past eight quarters. In Q2 2023, the company achieved a significantly high working capital turnover of 28.84, which indicates the company efficiently utilized its working capital to generate revenue during that period.

Q3 2023 also saw a relatively high working capital turnover of 14.80, suggesting continued efficiency in utilizing working capital. However, Q1 2023 showed a decrease in the ratio to 16.60 compared to the previous quarter, indicating a slightly lower efficiency in managing working capital to generate revenue.

In comparison to the same quarter of the previous year (Q4 2022), there was a notable improvement in Q4 2023 with a working capital turnover of 8.20 as opposed to 7.69. This improvement suggests better management of working capital in generating sales revenue.

Overall, the data indicates that Manhattan Associates, Inc. has been effectively utilizing its working capital to generate revenue, with some quarters showing exceptionally high turnover ratios. It is important for the company to maintain efficient working capital management to support its ongoing operational and growth strategies.