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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
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	120,989	113,782	90,794
Total current liabilities	US$ in thousands	81,717	79,626	73,623	63,851	61,814	59,421	58,481	56,063	60,878	57,962	57,701
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.