QuinStreet Inc (QNST)

Working capital turnover

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	613,514	545,505	549,589	560,954	580,624	596,814	574,801	566,084	582,099	586,795	589,189	598,826	578,487	544,250	519,861	502,994	490,339	495,342	482,904	468,899
Total current assets	US$ in thousands	169,087	146,766	128,079	132,679	151,204	177,297	155,730	169,081	182,792	193,573	185,010	202,815	206,176	194,071	181,379	184,842	185,572	179,260	150,970	151,300
Total current liabilities	US$ in thousands	126,398	109,114	85,035	83,257	89,820	112,793	96,174	104,377	109,579	104,270	96,656	110,456	115,611	111,712	97,785	104,598	85,837	90,896	82,712	87,573
Working capital turnover		14.37	14.49	12.77	11.35	9.46	9.25	9.65	8.75	7.95	6.57	6.67	6.48	6.39	6.61	6.22	6.27	4.92	5.61	7.07	7.36

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $613,514K ÷ ($169,087K – $126,398K)
= 14.37

QuinStreet Inc's working capital turnover has shown a fluctuating pattern over the historical periods provided. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio typically indicates better efficiency in managing working capital.

From the data, we observe that the working capital turnover ratio has generally been increasing over time, with some fluctuations between periods. The ratio has ranged from a low of 4.92 to a high of 14.49 over the past 20 quarters.

The increase in the working capital turnover ratio can be seen as a positive sign for the company, as it suggests that QuinStreet Inc has become more efficient in utilizing its working capital to support its sales activities. This improved efficiency may indicate better inventory management, faster collection of receivables, or more efficient payment of liabilities.

However, it is important to note that a very high working capital turnover ratio could also indicate that the company is too aggressive in managing its working capital, potentially risking stockouts or being overly reliant on short-term financing.

Overall, QuinStreet Inc's increasing trend in the working capital turnover ratio suggests improvements in the management of its working capital over the periods analyzed.