Quanex Building Products (NX)
Working capital turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,109,013 | 1,130,825 | 1,136,294 | 1,162,759 | 1,214,361 | 1,221,502 | 1,205,738 | 1,161,578 | 1,109,042 | 1,072,149 | 1,035,786 | 968,005 | 885,123 | 851,573 | 836,537 | 862,902 | 893,630 | 893,841 | 897,558 | 898,918 |
| Total current assets | US$ in thousands | 252,995 | 273,600 | 287,588 | 263,759 | 266,608 | 280,665 | 306,385 | 298,920 | 260,079 | 249,047 | 244,575 | 234,505 | 209,253 | 207,306 | 197,421 | 231,818 | 173,198 | 190,326 | 185,985 | 195,947 |
| Total current liabilities | US$ in thousands | 111,454 | 134,663 | 135,367 | 118,648 | 119,990 | 139,843 | 158,731 | 146,588 | 131,628 | 158,001 | 142,354 | 135,722 | 112,213 | 130,240 | 106,939 | 79,042 | 90,578 | 109,754 | 86,630 | 84,350 |
| Working capital turnover | 7.84 | 8.14 | 7.46 | 8.01 | 8.28 | 8.67 | 8.17 | 7.63 | 8.63 | 11.78 | 10.13 | 9.80 | 9.12 | 11.05 | 9.25 | 5.65 | 10.82 | 11.09 | 9.03 | 8.06 |
January 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,109,013K ÷ ($252,995K – $111,454K)
= 7.84
Quanex Building Products has shown fluctuating trends in its working capital turnover over the past several quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates an efficient use of working capital.
From the data provided, we observe that the working capital turnover ratio has ranged from a low of 5.65 to a high of 11.78 over the past two years. The average working capital turnover for this period stands at approximately 8.93, suggesting that Quanex Building Products has been relatively efficient in utilizing its working capital to generate sales.
It is notable that there have been some quarters where the working capital turnover ratio has significantly deviated from the average, such as in October 2021 and January 2022 when the ratios spiked to 11.78 and 11.05, respectively. These spikes could indicate periods of particularly efficient working capital management, possibly due to optimized inventory and accounts receivable management.
Conversely, there are also quarters, like April 2020 and January 2020, where the working capital turnover ratio dropped to 5.65 and 5.65, respectively. Such dips may suggest inefficiencies in working capital management, potentially due to issues such as excessive inventory levels or extended accounts receivable collection periods.
Overall, Quanex Building Products' working capital turnover ratio has shown some variability but generally indicates that the company has been efficient in utilizing its working capital to support its sales operations. It is important for the company to consistently monitor and improve its working capital management practices to sustain operational efficiency and drive financial performance.
Peer comparison
Jan 31, 2024