Matthews International Corporation (MATW)
Working capital turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,795,737 | 1,829,210 | 1,873,285 | 1,881,642 | 1,880,896 | 1,857,855 | 1,807,666 | 1,773,064 | 1,762,403 | 1,744,115 | 1,750,776 | 1,722,952 | 1,671,030 | 1,631,331 | 1,562,373 | 1,520,019 | 1,498,306 | 1,491,571 | 1,511,443 | 1,528,043 |
| Total current assets | US$ in thousands | 632,543 | 642,079 | 654,049 | 658,063 | 648,257 | 619,550 | 618,239 | 633,244 | 628,616 | 598,629 | 612,292 | 686,752 | 624,165 | 620,731 | 599,615 | 590,962 | 575,573 | 569,668 | 625,937 | 594,348 |
| Total current liabilities | US$ in thousands | 434,775 | 386,152 | 358,752 | 349,203 | 394,600 | 380,071 | 394,441 | 366,744 | 411,375 | 309,791 | 338,559 | 341,130 | 354,225 | 329,465 | 324,270 | 332,127 | 316,868 | 305,032 | 322,302 | 283,276 |
| Working capital turnover | 9.08 | 7.15 | 6.34 | 6.09 | 7.42 | 7.76 | 8.08 | 6.65 | 8.11 | 6.04 | 6.40 | 4.99 | 6.19 | 5.60 | 5.67 | 5.87 | 5.79 | 5.64 | 4.98 | 4.91 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,795,737K ÷ ($632,543K – $434,775K)
= 9.08
The working capital turnover ratio measures how efficiently Matthews International Corporation is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital to generate sales.
Looking at the data provided, we can observe fluctuations in the working capital turnover ratio over the past several quarters. The ratio has ranged from a low of 4.91 to a high of 9.08. The quarterly figures indicate variability in the company's ability to generate sales relative to its working capital.
Overall, the average working capital turnover ratio appears to be around 6.5, indicating that on average, Matthews International Corporation is generating sales 6.5 times for every dollar of working capital invested. It is important for the company to closely monitor and manage its working capital to ensure optimal efficiency in its operations and profitability.
It is crucial for the company to maintain a balance between managing its working capital effectively and generating sufficient sales to sustain its operations. Further analysis and comparison with industry peers would provide more insights into the company's performance and competitiveness.