The Marzetti Company (MZTI)
Working capital turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,909,122 | 1,886,520 | 1,900,130 | 1,876,745 | 1,871,759 | 1,873,595 | 1,867,084 | 1,858,562 | 1,822,527 | 1,820,279 | 1,758,838 | 1,709,871 | 1,676,390 | 1,609,543 | 1,563,298 | 1,509,886 | 1,467,067 | 1,402,355 | 1,366,469 | 1,346,571 |
| Total current assets | US$ in thousands | 443,631 | 439,655 | 480,972 | 452,587 | 443,993 | 440,731 | 405,399 | 386,258 | 374,463 | 391,560 | 373,636 | 377,801 | 351,781 | 361,579 | 389,407 | 409,856 | 423,481 | 428,260 | 426,264 | 408,407 |
| Total current liabilities | US$ in thousands | 186,294 | 186,384 | 167,250 | 173,177 | 183,969 | 189,786 | 163,376 | 167,208 | 168,752 | 196,451 | 180,171 | 190,915 | 165,585 | 179,477 | 172,832 | 179,787 | 173,923 | 151,983 | 140,628 | 139,819 |
| Working capital turnover | 7.42 | 7.45 | 6.06 | 6.72 | 7.20 | 7.47 | 7.71 | 8.48 | 8.86 | 9.33 | 9.09 | 9.15 | 9.00 | 8.84 | 7.22 | 6.56 | 5.88 | 5.08 | 4.78 | 5.01 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,909,122K ÷ ($443,631K – $186,294K)
= 7.42
The analysis of The Marzetti Company's working capital turnover over the specified periods reveals notable fluctuations indicating shifts in operational efficiency and liquidity management.
From September 30, 2020, through December 31, 2021, there was a consistent upward trend in the working capital turnover ratio, rising from 5.01 to 7.22. This upward movement suggests that the company was increasingly efficient in generating sales relative to its working capital, potentially reflecting improved inventory management, receivables collection, or overall operational leverage.
The most substantial increase occurred between December 31, 2021, and June 30, 2022, where the ratio surged from 7.22 to 9.00. This sharp rise indicates a significant enhancement in operational efficiency or a reduction in working capital investment needed to support sales. The peak was observed on September 30, 2022, at a ratio of 9.15, underscoring this period of heightened efficiency.
Subsequently, from late 2022 through mid-2023, the ratio stabilized near these elevated levels, with minor fluctuations around 8.86 to 9.33, implying sustained efficiency gains. However, starting in late 2023 and extending into 2024, a declining trend is evident, with the ratio decreasing from 8.48 (September 2023) down to 6.06 by December 2024. This decline suggests a reduction in sales relative to working capital or a potential increase in working capital requirements, possibly due to inventory buildup, extended receivables, or operational adjustments.
In the most recent periods, according to data up to June 2025, the ratio shows some stabilization with values around 7.20 to 7.45, indicating a partial recovery or adjustment in operational efficiency.
Overall, the working capital turnover ratio's initial rise highlights periods of operational improvement, while its subsequent decline may reflect changing business conditions, strategic shifts, or market factors influencing working capital utilization and sales performance.
Peer comparison
Jun 30, 2025