REX American Resources Corporation (REX)

Working capital turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Revenue (ttm)	US$ in thousands	833,384	845,937	845,135	873,486	855,000	866,849	849,638	804,988	774,802	688,804	609,955	453,604	372,812	367,714	330,168	396,709	418,034	410,458	447,537	470,426
Total current assets	US$ in thousands	452,103	418,085	387,943	360,956	372,644	374,020	357,332	342,882	345,167	307,242	284,699	269,781	258,750	253,005	246,939	247,138	271,135	260,530	258,992	253,646
Total current liabilities	US$ in thousands	66,259	48,690	47,541	36,189	54,599	57,282	41,953	38,859	50,483	46,535	38,695	29,625	30,737	26,742	21,189	19,869	31,599	24,433	22,267	20,324
Working capital turnover		2.16	2.29	2.48	2.69	2.69	2.74	2.69	2.65	2.63	2.64	2.48	1.89	1.64	1.63	1.46	1.75	1.75	1.74	1.89	2.02

January 31, 2024 calculation

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

The working capital turnover ratio measures how efficiently REX American Resources Corporation is utilizing its working capital to generate sales revenue. A higher ratio indicates more efficient utilization of working capital.

Based on the data provided:
- The working capital turnover ratio fluctuated over the periods, ranging from a low of 1.46 to a high of 2.74.
- The ratio has shown some variability, peaking at 2.74 in Oct 31, 2022, before slightly decreasing over subsequent periods.
- The ratio generally remained above 2.0 for the majority of the time, indicating a consistent and efficient use of working capital to support sales.
- However, there was a significant drop in the ratio to 1.46 in Apr 30, 2021, which may suggest a temporary inefficiency in working capital management during that period.
- Overall, the trend in the working capital turnover ratio shows a relatively stable and efficient management of working capital by REX American Resources Corporation, with occasional fluctuations.

It is important for the company to continue monitoring this ratio to ensure optimal utilization of working capital resources in supporting its sales activities and overall business operations.