RPM International Inc (RPM)
Working capital turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,372,640 | 7,335,280 | 7,256,410 | 6,707,730 | 6,106,290 |
| Total current assets | US$ in thousands | 3,170,300 | 2,895,350 | 3,184,170 | 3,151,810 | 2,782,000 |
| Total current liabilities | US$ in thousands | 1,467,450 | 1,466,060 | 1,490,800 | 2,016,410 | 1,331,410 |
| Working capital turnover | 4.33 | 5.13 | 4.29 | 5.91 | 4.21 |
May 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,372,640K ÷ ($3,170,300K – $1,467,450K)
= 4.33
The working capital turnover ratio for RPM International Inc. demonstrates variability over the specified period from May 31, 2021, to May 31, 2025. At the end of the fiscal year 2021, the ratio stood at 4.21, indicating that the company generated approximately 4.21 units of sales for every unit of working capital employed. This ratio increased significantly in 2022, reaching 5.91, which suggests an improvement in operational efficiency or effective utilization of working capital to generate sales during that period.
However, a subsequent decline is observed in 2023, with the ratio decreasing to 4.29. This reduction may reflect a relative increase in working capital or a dip in sales productivity, warranting further investigation into operational or market factors influencing this change. In the following year, 2024, the ratio recovered somewhat to 5.13, indicating a partial rebound in efficiency or better working capital management.
The trend continues with a slight decline to 4.33 in 2025, which remains below the peak observed in 2022. Overall, the ratios reveal fluctuations in RPM International Inc.'s ability to efficiently utilize working capital to generate sales, with notable improvement in 2022 followed by a period of stabilization and minor declines. These movements highlight the importance of operational and financial management decisions impacting working capital performance over the assessed timeframe.
Peer comparison
May 31, 2025