ScanSource Inc (SCSC)
Working capital turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,271,767 | 3,456,843 | 3,586,052 | 3,696,345 | 3,765,764 | 3,784,114 | 3,749,064 | 3,605,612 | 3,521,335 | 3,412,777 | 3,296,866 | 3,243,208 | 3,143,033 | 2,487,363 | 2,627,719 | 2,804,853 | 3,053,082 | 3,814,466 | 3,834,988 | 3,891,614 |
| Total current assets | US$ in thousands | 1,404,700 | 1,416,160 | 1,405,200 | 1,507,440 | 1,657,080 | 1,577,540 | 1,719,060 | 1,587,700 | 1,523,800 | 1,407,830 | 1,334,340 | 1,256,410 | 1,219,640 | 1,117,800 | 1,119,130 | 1,251,880 | 1,203,470 | 1,436,030 | 1,539,330 | 1,549,140 |
| Total current liabilities | US$ in thousands | 669,352 | 643,046 | 610,612 | 701,049 | 786,801 | 744,151 | 836,736 | 794,055 | 814,264 | 800,973 | 746,766 | 692,415 | 732,939 | 622,697 | 689,586 | 838,165 | 719,007 | 770,196 | 832,287 | 805,385 |
| Working capital turnover | 4.45 | 4.47 | 4.51 | 4.58 | 4.33 | 4.54 | 4.25 | 4.54 | 4.96 | 5.62 | 5.61 | 5.75 | 6.46 | 5.02 | 6.12 | 6.78 | 6.30 | 5.73 | 5.42 | 5.23 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,271,767K ÷ ($1,404,700K – $669,352K)
= 4.45
The working capital turnover ratio for ScanSource Inc has fluctuated over the past several quarters, indicating variations in how efficiently the company is utilizing its working capital to generate sales revenue. The ratio has ranged between 4.25 and 6.78, with an average of approximately 5.36.
A higher working capital turnover ratio generally indicates better efficiency in utilizing current assets to generate revenue. ScanSource Inc's ratio has shown an increasing trend from 4.25 in December 2022 to 6.78 in September 2020. This suggests that the company has improved its ability to generate sales relative to its investment in working capital during this period.
However, the ratio experienced some fluctuations in the recent quarters, with peaks and troughs observed. For instance, there was a notable decrease in the ratio from 6.46 in March 2021 to 4.96 in June 2022, followed by a subsequent increase to 5.62 in March 2022.
Overall, a working capital turnover ratio above 5 indicates that ScanSource Inc is effectively utilizing its working capital to drive sales, although the recent fluctuations in the ratio may warrant further investigation into the company's working capital management practices and sales performance in different quarters.
Peer comparison
Jun 30, 2024