N-Able Inc (NABL)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 423,324 | 410,532 | 396,492 | 382,039 | 373,927 | 365,298 | 360,194 | 353,907 |
| Total current assets | US$ in thousands | 224,791 | 203,949 | 183,637 | 162,617 | 154,156 | 143,592 | 143,426 | 126,618 |
| Total current liabilities | US$ in thousands | 81,717 | 79,626 | 73,623 | 63,851 | 61,814 | 59,421 | 58,481 | 56,063 |
| Working capital turnover | 2.96 | 3.30 | 3.60 | 3.87 | 4.05 | 4.34 | 4.24 | 5.02 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $423,324K ÷ ($224,791K – $81,717K)
= 2.96
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. N-Able Inc's working capital turnover has shown a decreasing trend from 5.02 in March 2022 to 2.96 in December 2023, indicating a decline in the efficiency of the company's working capital management over time. A lower ratio suggests that the company is not effectively utilizing its current assets to support sales.
Ideally, a higher working capital turnover ratio is preferred as it indicates that the company is able to generate more sales with less investment in working capital. However, in the case of N-Able Inc, the declining trend in the ratio suggests a decrease in efficiency and potential liquidity concerns.
It is important for N-Able Inc to monitor and improve its working capital turnover ratio to ensure optimal utilization of resources and maintain financial stability. Strategies such as efficient inventory management, timely receivables collection, and effective payables management can help improve the working capital turnover ratio and enhance overall operational efficiency.
Peer comparison
Dec 31, 2023