Nextracker Inc. Class A Common Stock (NXT)

Working capital turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022
Revenue (ttm)	US$ in thousands	2,499,841	2,281,721	2,084,665
Total current assets	US$ in thousands	1,768,240	1,418,960	1,338,780	1,116,810	872,265	954,337
Total current liabilities	US$ in thousands	891,486	759,437	772,210	676,138	507,426	604,612
Working capital turnover		2.85	3.46	3.68

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,499,841K ÷ ($1,768,240K – $891,486K)
= 2.85

Working capital turnover is a financial ratio that indicates how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio typically signifies better efficiency in the management of current assets and liabilities.

Nextracker Inc.'s Class A Common Stock has shown a fluctuating trend in working capital turnover over the last several quarters. The working capital turnover ratio decreased from 3.68 in September 2023 to 3.46 in December 2023. However, there was a further decline to 2.85 in March 2024.

This decreasing trend in the working capital turnover ratio may indicate a decrease in the company's efficiency in turning current assets and liabilities into sales. It could suggest that Nextracker Inc. Class A Common Stock is taking longer to convert working capital into sales revenue, which may require further analysis to identify the underlying reasons.

Overall, a declining working capital turnover ratio may raise concerns about the company's operational efficiency and its ability to manage working capital effectively. Investors and stakeholders should monitor this ratio closely to assess the company's financial health and performance in the future.