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.