N-Able Inc (NABL)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 462,627 421,880 371,769 346,456 302,871
Total current assets US$ in thousands 183,923 224,791 154,156 120,989 135,722
Total current liabilities US$ in thousands 150,098 81,717 61,814 60,878 54,827
Working capital turnover 13.68 2.95 4.03 5.76 3.74

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $462,627K ÷ ($183,923K – $150,098K)
= 13.68

The working capital turnover of N-Able Inc has shown fluctuating trends over the past five years. In 2020, the working capital turnover stood at 3.74, indicating that the company generated $3.74 in revenue for every dollar of working capital invested. The ratio improved in 2021 to 5.76, suggesting more efficient utilization of working capital to generate sales. However, in 2022, the ratio decreased to 4.03, indicating a potential slowdown in the company's ability to convert working capital into sales.

By 2023, the working capital turnover further declined to 2.95, raising concerns about the company's efficiency in managing working capital. Yet, in 2024, a significant improvement was observed as the working capital turnover spiked to 13.68, reflecting a substantial increase in sales relative to the investment in working capital.

Overall, the working capital turnover ratio of N-Able Inc has experienced fluctuations, with a mix of positive and concerning trends. It is important for the company to closely monitor and manage its working capital levels to ensure optimal efficiency in generating sales and maintaining healthy liquidity levels.