OSI Systems Inc (OSIS)

Working capital turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	1,713,170	1,538,760	1,278,430	1,183,240	1,146,900
Total current assets	US$ in thousands	1,422,860	1,215,520	839,903	746,144	709,404
Total current liabilities	US$ in thousands	696,938	814,637	571,694	613,954	344,767
Working capital turnover		2.36	3.84	4.77	8.95	3.15

June 30, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,713,170K ÷ ($1,422,860K – $696,938K)
= 2.36

The working capital turnover ratio for OSI Systems Inc. exhibits notable fluctuations over the period from June 30, 2021, to June 30, 2025.

In the fiscal year ending June 30, 2021, the ratio stood at 3.15, indicating a moderate level of efficiency in using working capital to generate sales. This ratio significantly increased in the subsequent year, reaching 8.95 as of June 30, 2022, suggesting a substantial improvement in operational efficiency and the company's ability to generate revenue from its working capital base.

However, the ratio declined in the following year, ending at 4.77 on June 30, 2023. Although still higher than the 2021 figure, this decrease indicates a reduction in efficiency, possibly due to changes in sales volume, working capital management, or operational strategies.

The downward trend continued into the fiscal year ending June 30, 2024, with the ratio decreasing further to 3.84. This indicates a continued decline in the efficient utilization of working capital for revenue generation.

By June 30, 2025, the ratio had decreased to 2.36, reflecting a further reduction in efficiency. The overall decline from the 2022 peak suggests potential challenges in working capital management, variations in sales relative to working capital, or strategic changes impacting operational efficiency.

Overall, the data demonstrates a peak in working capital turnover during 2022, followed by a consistent decline in subsequent years, which warrants further analysis to understand the underlying factors affecting the company's operational efficiency during this period.