ScanSource Inc (SCSC)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,271,770 | 3,765,770 | 3,521,330 | 3,143,030 | 3,034,980 |
| Total current assets | US$ in thousands | 1,404,700 | 1,657,080 | 1,523,800 | 1,219,640 | 1,203,470 |
| Total current liabilities | US$ in thousands | 669,352 | 786,801 | 814,264 | 732,939 | 719,007 |
| Working capital turnover | 4.45 | 4.33 | 4.96 | 6.46 | 6.26 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,271,770K ÷ ($1,404,700K – $669,352K)
= 4.45
The working capital turnover ratio for ScanSource Inc has been declining over the past five years, from 6.26 in 2020 to 4.45 in 2024. This indicates that the company is generating less revenue relative to its working capital in recent years. A lower working capital turnover ratio could suggest inefficiencies in managing working capital, such as excess inventory or receivables, which could tie up cash and reduce the company's ability to generate sales. It is important for ScanSource Inc to closely monitor and improve its working capital turnover to ensure optimal utilization of its current assets and support sustainable growth.
Peer comparison
Jun 30, 2024