Patterson Companies Inc (PDCO)

Working capital turnover

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Apr 27, 2024 Jan 31, 2024 Jan 27, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022
Revenue (ttm) US$ in thousands 6,511,190 6,661,440 6,603,160 6,677,520 6,607,630 6,537,740 6,498,380 6,459,020 6,527,400 6,595,780 6,619,890 6,644,000 6,549,050 6,454,100 6,376,510 6,298,920 6,311,490 6,281,890 6,355,230 6,481,130
Total current assets US$ in thousands 1,837,630 1,842,020 1,762,110 1,778,760 1,778,760 1,832,560 1,832,560 1,790,680 1,790,680 1,772,140 1,772,140 1,783,140 1,783,140 1,844,710 1,844,710 1,825,530 1,825,530 1,705,980 1,705,980 1,679,020
Total current liabilities US$ in thousands 1,305,420 1,344,440 1,357,520 1,332,550 1,332,550 1,283,710 1,283,710 1,148,540 1,148,540 1,087,750 1,087,750 1,085,330 1,085,330 1,173,710 1,173,710 1,143,820 1,143,820 1,043,560 1,043,560 1,015,670
Working capital turnover 12.23 13.39 16.32 14.96 14.81 11.91 11.84 10.06 10.17 9.64 9.67 9.52 9.39 9.62 9.50 9.24 9.26 9.48 9.59 9.77

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,511,190K ÷ ($1,837,630K – $1,305,420K)
= 12.23

Patterson Companies Inc's working capital turnover ratio has experienced fluctuations over the reported periods. The working capital turnover ratio measures a company's ability to generate sales from its working capital. A higher ratio typically indicates that the company is efficiently utilizing its working capital to generate revenue.

From April 2022 to July 2023, the working capital turnover ratio remained relatively stable, ranging between 9.24 and 9.67. However, there was a noticeable increase in the ratio in the following periods, reaching its peak at 16.32 in July 2024. This sharp increase indicates a significant improvement in Patterson Companies Inc's ability to efficiently convert its working capital into sales during that period.

Subsequently, the ratio dropped to 13.39 in October 2024 and further declined to 12.23 in January 2025. Although the ratio decreased in these periods, it remained above the levels observed in the earlier years, indicating continued efficiency in working capital utilization compared to the initial periods.

Overall, Patterson Companies Inc has demonstrated a consistent ability to generate sales from its working capital, with some fluctuations in the ratio over time. The company should continue to monitor and manage its working capital effectively to sustain or improve its operational efficiency in the future.


Peer comparison

Jan 31, 2025

Company name
Symbol
Working capital turnover
Patterson Companies Inc
PDCO
12.23
Henry Schein Inc
HSIC
10.69
Owens & Minor Inc
OMI
72.66