REX American Resources Corporation (REX)

Working capital turnover

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Revenue US$ in thousands 642,491 833,384 855,000 774,802 372,664
Total current assets US$ in thousands 435,819 452,103 372,644 345,167 258,750
Total current liabilities US$ in thousands 50,443 66,259 54,599 50,483 30,737
Working capital turnover 1.67 2.16 2.69 2.63 1.63

January 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $642,491K ÷ ($435,819K – $50,443K)
= 1.67

The working capital turnover of REX American Resources Corporation has experienced fluctuations over the past five years. It increased from 1.63 in January 31, 2021, to 2.63 in January 31, 2022, showing a significant improvement in the efficiency of utilizing working capital. This upward trend continued in the following years, reaching 2.69 in January 31, 2023, which indicates the company was able to generate more revenue using its working capital resources.

However, there was a slight decline in the working capital turnover to 2.16 in January 31, 2024, which suggests a potential decrease in efficiency in generating sales relative to the working capital employed. The trend further decreased to 1.67 in January 31, 2025, indicating a notable decrease in the efficiency of working capital utilization compared to the previous year.

Overall, the working capital turnover ratio of REX American Resources Corporation demonstrates variability, highlighting the importance of closely monitoring and managing the efficient use of working capital to optimize revenue generation.