ScanSource Inc (SCSC)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,040,810 | 3,259,810 | 3,787,720 | 3,529,940 | 3,150,810 |
| Total current assets | US$ in thousands | 1,370,450 | 1,404,700 | 1,657,080 | 1,523,800 | 1,219,640 |
| Total current liabilities | US$ in thousands | 682,964 | 669,352 | 786,801 | 814,264 | 732,939 |
| Working capital turnover | 4.42 | 4.43 | 4.35 | 4.97 | 6.47 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,040,810K ÷ ($1,370,450K – $682,964K)
= 4.42
The working capital turnover ratio for ScanSource Inc. demonstrates a declining trend from June 30, 2021, through June 30, 2023, followed by a relatively stable pattern in subsequent years. Specifically, the ratio decreased from 6.47 in 2021 to 4.97 in 2022, and further marginally declined to 4.35 in 2023. This decline indicates that the company has been generating less sales revenue per dollar of net working capital over this period, potentially reflecting increasing working capital levels or a reduction in sales efficiency relative to working capital investments.
In the subsequent two years, the ratio stabilizes slightly around the 4.42 to 4.43 range, with minimal fluctuation observed in 2024 and 2025. This stabilization suggests that the company has reached a more consistent relationship between sales and working capital, although the overall lower ratios compared to 2021 highlight a possible trend toward more conservative working capital management or changes in operational dynamics.
Overall, the downward trend until 2023, followed by stabilization, points to a period of adjustment in working capital utilization, which could involve factors such as inventory management, receivables, or payables, influencing the efficiency with which working capital is converted into sales.
Peer comparison
Jun 30, 2025