Matthews International Corporation (MATW)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,795,740 | 1,880,900 | 1,762,400 | 1,671,030 | 1,498,310 |
| Total current assets | US$ in thousands | 632,543 | 648,257 | 628,616 | 624,165 | 575,573 |
| Total current liabilities | US$ in thousands | 434,775 | 394,600 | 411,375 | 354,225 | 316,868 |
| Working capital turnover | 9.08 | 7.42 | 8.11 | 6.19 | 5.79 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,795,740K ÷ ($632,543K – $434,775K)
= 9.08
The working capital turnover of Matthews International Corporation has shown a consistent upward trend over the past five years. It has increased from 5.79 in 2020 to 9.08 in 2024, indicating that the company is generating more revenue from its working capital each year. This suggests that the company is efficiently utilizing its current assets to generate sales revenue. A higher working capital turnover ratio is generally seen as a positive sign, as it indicates that the company is effectively managing its working capital and turning it over into sales at a faster rate. Matthews International Corporation's improving working capital turnover ratio signifies its efficiency in utilizing its resources to support its operations and generate revenue.