RPM International Inc (RPM)
Working capital turnover
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,210,630 | 7,210,030 | 7,225,690 | 7,227,590 | 7,153,220 | 7,135,330 | 7,037,070 | 6,891,810 | 6,615,470 | 6,379,750 | 6,216,330 | 6,062,430 | 6,018,050 | 5,756,940 | 5,658,510 | 5,568,830 | 5,428,360 | 5,570,800 | 5,534,900 | 5,496,300 |
| Total current assets | US$ in thousands | 2,895,350 | 2,746,580 | 2,919,010 | 3,111,980 | 3,184,170 | 3,079,380 | 3,316,860 | 3,287,690 | 3,151,810 | 2,810,360 | 2,759,420 | 2,712,700 | 2,782,000 | 2,447,570 | 2,452,430 | 2,457,040 | 2,423,430 | 2,315,470 | 2,360,260 | 2,416,270 |
| Total current liabilities | US$ in thousands | 1,466,060 | 1,201,950 | 1,254,360 | 1,268,650 | 1,490,800 | 1,119,510 | 1,290,030 | 1,649,250 | 2,016,410 | 1,934,900 | 1,483,590 | 1,163,620 | 1,331,410 | 1,087,500 | 1,132,690 | 1,092,780 | 1,093,580 | 962,131 | 984,068 | 1,496,570 |
| Working capital turnover | 5.04 | 4.67 | 4.34 | 3.92 | 4.22 | 3.64 | 3.47 | 4.21 | 5.83 | 7.29 | 4.87 | 3.91 | 4.15 | 4.23 | 4.29 | 4.08 | 4.08 | 4.12 | 4.02 | 5.98 |
May 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,210,630K ÷ ($2,895,350K – $1,466,060K)
= 5.04
The working capital turnover of RPM International Inc has shown fluctuations over the past several periods. The ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Looking at the data provided, we can see that the working capital turnover has ranged from a low of 3.47 to a high of 7.29 over the periods analyzed. The ratio reached its peak in February 2022, with a value of 7.29, suggesting that the company was able to generate $7.29 in sales for every dollar of working capital invested during that period. This indicates strong efficiency in managing its working capital.
On the other hand, the lowest value of 3.47 was observed in February 2023, indicating a temporary decline in the efficiency of utilizing working capital to generate sales revenue. However, the ratio has generally remained above 4.0 in most periods, indicating a consistent level of efficiency in managing working capital.
Overall, the trend in the working capital turnover ratio for RPM International Inc indicates fluctuations but generally reflects efficient management of working capital to generate sales revenue. It will be essential for the company to monitor and maintain this efficiency to support its financial performance in the future.
Peer comparison
May 31, 2024