The Marzetti Company (MZTI)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,909,120 | 1,871,760 | 1,822,530 | 1,676,390 | 1,467,070 |
| Total current assets | US$ in thousands | 443,631 | 443,993 | 374,463 | 351,781 | 423,481 |
| Total current liabilities | US$ in thousands | 186,294 | 183,969 | 168,752 | 165,585 | 173,923 |
| Working capital turnover | 7.42 | 7.20 | 8.86 | 9.00 | 5.88 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,909,120K ÷ ($443,631K – $186,294K)
= 7.42
The analysis of The Marzetti Company's working capital turnover over the specified period reveals fluctuations that reflect changes in the company's operational efficiency and management of working capital.
On June 30, 2021, the working capital turnover stood at 5.88, indicating that for every dollar of working capital employed, the company generated approximately $5.88 in sales. This ratio increased significantly by June 30, 2022, reaching 9.00, which signifies improved efficiency in utilizing working capital to generate sales.
However, the ratio slightly declined to 8.86 by June 30, 2023, suggesting a marginal reduction in sales efficiency relative to working capital. Continuing this trend, the ratio decreased further to 7.20 on June 30, 2024, indicating a more notable decline in the effectiveness of working capital utilization in generating sales. Nonetheless, there was a slight recovery observed by June 30, 2025, when the ratio increased marginally to 7.42.
Overall, the company's working capital turnover experienced an initial period of growth from 2021 to 2022, followed by a gradual decline from 2022 through 2024, with a modest rebound in 2025. This pattern may reflect changes in operational processes, sales volume, inventory management, or receivables collection practices. The fluctuations suggest that while the company initially enhanced its efficiency in managing working capital, subsequent periods have seen some challenges or shifts that impacted this efficiency.
Peer comparison
Jun 30, 2025