Insight Enterprises Inc (NSIT)
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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,142,340 | 9,414,780 | 9,676,330 | 10,062,510 | 10,391,690 | 10,454,800 | 10,369,350 | 9,855,280 | 9,395,600 | 9,121,090 | 8,611,260 | 8,349,860 | 8,298,980 | 8,303,360 | 8,280,850 | 8,154,080 | 7,701,790 | 7,161,530 | 6,997,740 | 6,998,080 |
| Total current assets | US$ in thousands | 4,331,300 | 3,710,250 | 4,339,780 | 3,745,820 | 3,900,670 | 3,784,660 | 4,401,000 | 3,768,240 | 3,568,310 | 3,322,990 | 3,555,230 | 3,153,690 | 3,176,450 | 2,726,410 | 3,264,490 | 2,966,160 | 3,048,030 | 2,802,130 | 2,687,430 | 2,152,990 |
| Total current liabilities | US$ in thousands | 3,373,380 | 2,735,320 | 3,313,230 | 2,884,200 | 2,866,410 | 2,273,040 | 2,968,920 | 2,677,690 | 2,515,260 | 2,145,760 | 2,483,650 | 2,175,070 | 2,227,460 | 1,964,000 | 2,430,960 | 1,896,600 | 1,883,530 | 1,751,970 | 1,948,960 | 1,409,250 |
| Working capital turnover | 9.54 | 9.66 | 9.43 | 11.68 | 10.05 | 6.92 | 7.24 | 9.04 | 8.92 | 7.75 | 8.04 | 8.53 | 8.75 | 10.89 | 9.93 | 7.62 | 6.61 | 6.82 | 9.48 | 9.41 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,142,340K ÷ ($4,331,300K – $3,373,380K)
= 9.54
Insight Enterprises Inc. has shown fluctuations in its working capital turnover ratio over the past eight quarters. The working capital turnover ratio measures the efficiency of the company in managing its working capital to generate sales. A higher ratio indicates that the company is efficiently using its working capital to generate sales.
In Q1 2023, the working capital turnover ratio was 11.73, which was the highest among the quarters analyzed. This high ratio suggests that the company was able to generate sales at a faster rate relative to its working capital invested during that period. However, in the subsequent quarters, the ratio decreased, indicating a potential decrease in efficiency in utilizing working capital.
The lowest working capital turnover ratio was observed in Q3 2022 at 6.94, indicating a potential inefficiency in managing working capital in that period. Since then, the company has shown improvement in its working capital turnover, reaching a ratio of 9.07 in Q1 2022.
Overall, it is important for Insight Enterprises Inc. to consistently monitor and improve its working capital turnover ratio to ensure efficient utilization of working capital resources in generating sales.
Peer comparison
Dec 31, 2023