Skyline Corporation (SKY)
Working capital turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,019,710 | 2,602,580 | 2,203,460 | 1,417,650 | 1,364,620 |
| Total current assets | US$ in thousands | 918,302 | 1,043,470 | 782,260 | 499,767 | 398,813 |
| Total current liabilities | US$ in thousands | 389,601 | 248,917 | 350,112 | 263,642 | 186,647 |
| Working capital turnover | 3.82 | 3.28 | 5.10 | 6.00 | 6.43 |
March 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,019,710K ÷ ($918,302K – $389,601K)
= 3.82
The working capital turnover of Skyline Corporation has shown a declining trend over the past five years. As of March 31, 2020, the working capital turnover stood at 6.43, indicating that the company generated $6.43 in revenue for every dollar of working capital invested. However, by March 31, 2024, this ratio had decreased to 3.82, suggesting a decrease in efficiency in utilizing working capital to generate sales.
This declining trend in working capital turnover could be a cause for concern as it may indicate potential inefficiencies or operating challenges within the company. Further analysis of the company's operating and financial activities would be necessary to pinpoint the underlying reasons for this decline and to identify strategies for improvement.
Peer comparison
Mar 31, 2024