Maximus Inc (MMS)

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	5,306,200	5,250,280	5,124,030	4,982,520	4,904,730	4,821,810	4,758,910	4,729,390	4,631,020	4,560,120	4,677,860	4,459,810	4,254,484	4,072,190	3,730,007	3,588,862	3,461,537	3,292,667	3,122,040	3,040,425
Total current assets	US$ in thousands	1,200,540	1,078,290	1,118,450	1,109,620	1,055,470	996,036	951,904	1,256,090	1,032,310	1,071,580	1,090,500	1,148,330	1,079,490	1,307,360	932,137	986,827	932,558	979,512	863,453	843,908
Total current liabilities	US$ in thousands	807,529	680,043	728,716	658,366	723,014	683,301	681,175	746,222	774,447	730,206	753,266	710,792	789,433	860,604	593,724	547,400	561,168	502,544	438,332	432,708
Working capital turnover		13.50	13.18	13.15	11.04	14.75	15.42	17.58	9.28	17.96	13.36	13.87	10.19	14.67	9.12	11.02	8.17	9.32	6.90	7.34	7.39

September 30, 2024 calculation

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

The working capital turnover ratio for Maximus Inc has shown some fluctuations over the past years, ranging from a low of 6.90 to a high of 17.96. The working capital turnover measures how efficiently a company utilizes its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to generate sales.

In the most recent period, the working capital turnover ratio was 13.50, which indicates that Maximus Inc was able to generate $13.50 in sales for every $1 of working capital invested. This suggests a relatively efficient use of working capital to drive sales.

It is important to note the trend in the working capital turnover ratio over time. In this case, the ratio has generally been fluctuating, with some periods showing higher efficiency in utilizing working capital than others. Further analysis may be required to understand the specific factors driving these fluctuations and to determine the overall effectiveness of Maximus Inc in managing its working capital for revenue generation.