Maximus Inc (MMS)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	5,306,200	4,904,730	4,631,020	4,254,480	3,461,540
Total current assets	US$ in thousands	1,200,540	1,055,470	1,032,310	1,079,490	932,558
Total current liabilities	US$ in thousands	807,529	723,014	774,447	789,433	561,168
Working capital turnover		13.50	14.75	17.96	14.67	9.32

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,306,200K ÷ ($1,200,540K – $807,529K)
= 13.50

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its sales activities.

Based on the data provided for Maximus Inc, the working capital turnover has been fluctuating over the past five years. In 2022, the ratio was at its highest value of 17.96, indicating that Maximus Inc was very efficient in utilizing its working capital to generate sales. This implies that the company was able to generate $17.96 in sales revenue for every dollar of working capital invested.

In 2023 and 2021, the working capital turnover ratios were 14.75 and 14.67, respectively, which also indicate a high level of efficiency in working capital management.

However, in 2020, the ratio dropped to 9.32, suggesting a decrease in efficiency in utilizing working capital to support sales activities compared to the other years.

Overall, Maximus Inc has shown strong efficiency in managing its working capital to support sales activities, with some fluctuations in performance over the years.