Liveramp Holdings Inc (RAMP)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	659,661	596,583	528,657	443,026	380,572
Total current assets	US$ in thousands	602,032	714,559	815,834	825,715	896,393
Total current liabilities	US$ in thousands	216,576	174,829	184,566	165,249	161,382
Working capital turnover		1.71	1.11	0.84	0.67	0.52

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $659,661K ÷ ($602,032K – $216,576K)
= 1.71

The working capital turnover ratio for Liveramp Holdings Inc has shown a positive trend over the past five years, indicating an improvement in the efficiency of the company's working capital management.

The working capital turnover ratio has increased steadily from 0.52 in 2020 to 1.71 in 2024. This suggests that Liveramp has been able to generate more revenue relative to its investment in working capital during this period.

A higher working capital turnover ratio typically indicates that the company is effectively utilizing its current assets to generate sales, which is a positive sign of operational efficiency. This improvement could be attributed to better inventory management, more efficient receivables collection, or improved payables management.

Overall, the increasing trend in Liveramp's working capital turnover ratio reflects positively on the company's ability to efficiently manage its working capital and generate revenue from its operational activities.