Pegasystems Inc (PEGA)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,497,180 1,432,620 1,317,840 1,211,650 1,017,520
Total current assets US$ in thousands 1,333,700 1,029,030 846,478 840,218 1,001,430
Total current liabilities US$ in thousands 1,086,060 577,059 538,940 485,404 415,138
Working capital turnover 6.05 3.17 4.29 3.41 1.74

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,497,180K ÷ ($1,333,700K – $1,086,060K)
= 6.05

The working capital turnover ratio for Pegasystems Inc. demonstrates significant variation over the analyzed period from December 31, 2020, to December 31, 2024. In 2020, the ratio stood at 1.74, indicating that the company generated approximately 1.74 dollars of revenue for each dollar of working capital employed. This ratio increased substantially in 2021 to 3.41, reflecting improved efficiency in utilizing working capital to generate sales. The upward trend continued into 2022, reaching 4.29, signifying further enhancement in operational efficiency. However, in 2023, the ratio declined to 3.17, suggesting a temporary reduction in how effectively working capital was converted into revenue. The most notable change was observed in 2024, when the ratio surged to 6.05, indicating a significant improvement in the company's ability to generate sales relative to its working capital. Overall, the pattern reflects periods of both growth and fluctuation in operational efficiency, with a marked peak in 2024, which may imply optimized working capital management or increased revenue generation relative to working capital investment.