Post Holdings Inc (POST)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,922,700 | 6,991,000 | 5,851,200 | 4,980,700 | 4,711,000 |
| Total current assets | US$ in thousands | 2,231,600 | 1,478,500 | 2,223,400 | 2,086,100 | 2,287,800 |
| Total current liabilities | US$ in thousands | 944,900 | 805,300 | 823,800 | 1,049,200 | 974,400 |
| Working capital turnover | 6.16 | 10.38 | 4.18 | 4.80 | 3.59 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,922,700K ÷ ($2,231,600K – $944,900K)
= 6.16
Post Holdings Inc's working capital turnover has varied over the past five years, ranging from a low of 3.59 in 2020 to a high of 10.38 in 2023. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher turnover ratio suggests that the company is effectively managing its working capital to support its operations and generate sales.
In 2024, the working capital turnover decreased to 6.16 from the previous year's peak of 10.38 in 2023. This decline could indicate a decrease in the company's efficiency in utilizing its working capital to generate sales compared to the previous year.
Looking back at previous years, the ratio was 4.18 in 2022 and 4.80 in 2021. The increase in 2021 from 2020 suggests improved efficiency in managing working capital to support sales growth. However, the significant jump to 10.38 in 2023 could indicate a specific event or management strategy that led to a temporary increase in efficiency.
Overall, while there have been fluctuations in Post Holdings Inc's working capital turnover ratio over the years, the company has generally maintained a healthy ratio indicating effective management of working capital to support its revenue generation activities.
Peer comparison
Sep 30, 2024