Quanex Building Products (NX)
Working capital turnover
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,275,900 | 1,085,708 | 1,102,973 | 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 |
| Total current assets | US$ in thousands | 611,268 | 301,399 | 263,503 | 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 |
| Total current liabilities | US$ in thousands | 272,867 | 127,869 | 118,531 | 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 |
| Working capital turnover | 3.77 | 6.26 | 7.61 | 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 |
October 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,275,900K ÷ ($611,268K – $272,867K)
= 3.77
Quanex Building Products has demonstrated varying levels of efficiency in managing its working capital over the past few years, as indicated by its working capital turnover ratio. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
From the data provided, we observe fluctuations in the working capital turnover ratio over the periods presented. The ratio ranges from a low of 3.77 to a high of 11.78, indicating significant variability in Quanex Building Products' ability to convert working capital into sales.
Overall, the trend shows that Quanex Building Products has generally maintained a relatively high level of efficiency in converting working capital into sales revenue, with the ratio consistently above 5. A higher working capital turnover ratio signifies that the company is effectively managing its working capital to support its operations and generate revenue.
It is worth noting that the working capital turnover ratio has shown a generally increasing trend over the years, with occasional fluctuations. This progression suggests that Quanex Building Products has made improvements in its working capital management practices, leading to higher efficiency in utilizing its resources to drive sales growth.
In conclusion, while there have been fluctuations in the working capital turnover ratio, Quanex Building Products has generally shown a positive trend of increasing efficiency in managing its working capital to support its business operations and drive sales revenue.
Peer comparison
Oct 31, 2024