REX American Resources Corporation (REX)

Working capital turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Revenue	US$ in thousands	833,384	855,000	774,802	372,664	417,700
Total current assets	US$ in thousands	452,103	372,644	345,167	258,750	271,135
Total current liabilities	US$ in thousands	66,259	54,599	50,483	30,737	31,599
Working capital turnover		2.16	2.69	2.63	1.63	1.74

January 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $833,384K ÷ ($452,103K – $66,259K)
= 2.16

The working capital turnover for REX American Resources Corporation has exhibited fluctuations over the past five fiscal years. The ratio decreased from 2.74 in January 2020 to 1.63 in January 2021 before showing a slight increase to 1.74 in January 2022. Subsequently, the ratio experienced an uptick to 2.63 in January 2023. However, in the most recent period ending January 2024, the working capital turnover improved significantly to 2.16.

A working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio is generally indicative of more efficient working capital management, as the company is able to generate more revenue with its current level of working capital. In contrast, a lower ratio may signify inefficiencies in the utilization of working capital.

The varying trends in REX American Resources Corporation's working capital turnover suggest that the company's management of its working capital has been inconsistent over the years. It is crucial for the company to closely monitor and improve its working capital management practices to ensure optimal utilization of resources and sustained operational efficiency.