OSI Systems Inc (OSIS)

Working capital turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,533,660	1,280,430	1,211,210	1,145,600	1,162,640
Total current assets	US$ in thousands	1,215,520	839,903	746,144	709,404	617,709
Total current liabilities	US$ in thousands	814,637	571,694	613,954	344,767	330,101
Working capital turnover		3.83	4.77	9.16	3.14	4.04

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,533,660K ÷ ($1,215,520K – $814,637K)
= 3.83

The working capital turnover ratio for OSI Systems Inc has shown fluctuating trends over the past five years. The ratio indicates the company's efficiency in utilizing its working capital to generate sales revenue.

In June 2024, the working capital turnover ratio was 3.83, representing a decrease from the previous year. This suggests that OSI Systems Inc may have experienced challenges in efficiently converting its working capital into sales during the period.

In June 2023, the company had a working capital turnover ratio of 4.77, showing an improvement from the prior year. This indicates that OSI Systems Inc was more effective in generating revenue from its working capital in that period.

The significant spike in the working capital turnover ratio to 9.16 in June 2022 suggests a notable improvement in the company's ability to generate sales relative to its working capital investment. This could be a positive sign of operational efficiency and effective management of working capital during that year.

In June 2021, the working capital turnover ratio decreased to 3.14, indicating a decline in the company's efficiency in converting working capital into sales revenue compared to the previous year. This could signal potential challenges in managing working capital effectively in that period.

Lastly, in June 2020, OSI Systems Inc had a working capital turnover ratio of 4.04, reflecting a moderate improvement from the previous year. This indicates that the company was relatively more efficient in utilizing its working capital to generate sales in that fiscal year.

Overall, the fluctuating trends in the working capital turnover ratio for OSI Systems Inc suggest varying levels of efficiency in managing working capital and generating sales revenue over the five-year period. Further analysis of the company's financial performance and operational strategies may provide insights into the factors influencing these fluctuations.