Science Applications International Corporation Common Stock (SAIC)

Working capital turnover

Jan 31, 2025 Nov 1, 2024 Aug 2, 2024 May 3, 2024 Feb 2, 2024 Nov 3, 2023 Aug 4, 2023 May 5, 2023 Feb 3, 2023 Oct 28, 2022 Jul 29, 2022 Apr 29, 2022 Jan 28, 2022 Oct 29, 2021 Jul 30, 2021 Apr 30, 2021 Jan 29, 2021 Oct 30, 2020 Jul 31, 2020 May 1, 2020
Revenue (ttm) US$ in thousands 7,479,000 7,378,000 7,297,000 7,263,000 7,444,000 7,556,000 7,570,000 7,617,000 7,585,000 7,434,000 7,423,000 7,428,000 7,310,000 7,239,000 7,159,000 7,087,000 6,966,000 6,879,000 6,691,000 6,521,000
Total current assets US$ in thousands 1,154,000 1,160,000 1,103,000 1,091,000 1,131,000 1,388,000 1,384,000 1,675,000 1,197,000 1,247,000 1,270,000 1,291,000 1,263,000 1,383,000 1,343,000 1,440,000 1,289,000 1,401,000 1,413,000 1,525,000
Total current liabilities US$ in thousands 1,396,000 1,337,000 1,292,000 1,154,000 1,158,000 1,226,000 1,212,000 1,553,000 1,126,000 1,230,000 1,190,000 1,334,000 1,352,000 1,395,000 1,383,000 1,398,000 1,275,000 1,433,000 1,373,000 1,452,000
Working capital turnover 46.64 44.01 62.43 106.83 437.29 92.79 168.74 497.57 167.28 89.33

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,479,000K ÷ ($1,154,000K – $1,396,000K)
= —

The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.

Analyzing the data provided for Science Applications International Corporation Common Stock from May 1, 2020, to January 31, 2025, we can observe the following trends in the working capital turnover ratio:

- The working capital turnover ratio fluctuates significantly over the period, ranging from as low as 44.01 to as high as 497.57.
- There are multiple instances where the working capital turnover ratio is not provided ("—"), indicating incomplete data or potential discrepancies in reporting.
- The highest working capital turnover ratio was observed on January 29, 2021, at 497.57, suggesting that the company efficiently utilized its working capital to generate revenue during that period.
- The working capital turnover ratio experienced a sharp decline after January 29, 2021, but gradually picked up again in subsequent periods.
- Despite fluctuations, the working capital turnover ratio generally stayed above 50, indicating a reasonable level of efficiency in utilizing working capital to support operations.

In conclusion, Science Applications International Corporation demonstrated varying levels of efficiency in managing its working capital over the analyzed period, with significant fluctuations in the working capital turnover ratio. The company should strive to maintain a consistent and optimal level of working capital turnover to support its operational activities effectively.