Nextracker Inc. Class A Common Stock (NXT)

Working capital turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Revenue	US$ in thousands	2,959,200	2,499,840	1,902,140	1,457,590	1,195,620
Total current assets	US$ in thousands	2,157,990	1,768,240	872,265	714,062	583,253
Total current liabilities	US$ in thousands	1,033,510	891,486	507,426	473,371	391,351
Working capital turnover		2.63	2.85	5.21	6.06	6.23

March 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,959,200K ÷ ($2,157,990K – $1,033,510K)
= 2.63

The working capital turnover ratio for Nextracker Inc. Class A Common Stock has displayed a declining trend over the period from March 31, 2021, to March 31, 2025. The ratio, which stood at 6.23 on March 31, 2021, decreased to 2.63 by March 31, 2025. This indicates that the company's efficiency in generating revenue from its working capital has weakened over time. A higher working capital turnover ratio is generally preferred as it suggests that the company is utilizing its working capital more effectively to generate sales. The declining trend in Nextracker Inc.'s working capital turnover ratio may raise concerns about its liquidity management and operational efficiency. Further analysis and investigation into the company's working capital management practices are advised to identify the factors contributing to this trend and to implement appropriate strategies for improvement.