Prestige Brand Holdings Inc (PBH)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	1,125,360	1,127,720	1,086,810	943,365	963,010
Total current assets	US$ in thousands	375,043	391,743	293,267	269,835	365,654
Total current liabilities	US$ in thousands	117,048	160,715	143,422	122,138	149,881
Working capital turnover		4.36	4.88	7.25	6.39	4.46

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,125,360K ÷ ($375,043K – $117,048K)
= 4.36

The working capital turnover ratio for Prestige Brand Holdings Inc has experienced fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In 2024, the working capital turnover ratio decreased to 4.36 from 4.88 in 2023, suggesting a decrease in the efficiency of converting working capital into sales. This may be due to an increase in working capital relative to sales or a decrease in sales revenue.

In 2022, the working capital turnover ratio significantly increased to 7.25 from 6.39 in 2021, indicating a sharp improvement in efficiency in utilizing working capital to generate sales. This could be a result of better management of working capital or an increase in sales relative to working capital.

In 2020, the ratio was 4.46, showing a moderate efficiency in converting working capital into sales. Overall, while there have been fluctuations in the working capital turnover ratio of Prestige Brand Holdings Inc, it is important for the company to closely monitor and manage its working capital to ensure optimal efficiency in its operations.