Skyline Corporation (SKY)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,409,422 | 2,324,270 | 2,177,372 | 2,019,875 | 1,993,721 | 2,017,688 | 2,351,771 | 2,602,929 | 2,759,060 | 2,705,511 | 2,420,092 | 2,204,284 | 2,013,709 | 1,857,108 | 1,655,230 | 1,418,064 | 1,272,688 | 1,237,018 | 1,269,592 | 1,368,795 |
| Total current assets | US$ in thousands | 1,020,680 | 1,014,110 | 975,928 | 918,302 | 870,165 | 977,938 | 1,079,030 | 1,043,470 | 1,005,210 | 1,026,340 | 907,426 | 782,260 | 634,709 | 583,435 | 562,374 | 499,767 | 455,025 | 457,316 | 411,835 | 398,813 |
| Total current liabilities | US$ in thousands | 394,162 | 418,684 | 418,694 | 389,601 | 339,297 | 243,151 | 245,944 | 248,917 | 260,283 | 362,571 | 370,235 | 350,112 | 283,609 | 289,281 | 288,443 | 263,642 | 207,651 | 195,065 | 177,611 | 186,647 |
| Working capital turnover | 3.85 | 3.90 | 3.91 | 3.82 | 3.76 | 2.75 | 2.82 | 3.28 | 3.70 | 4.08 | 4.51 | 5.10 | 5.74 | 6.31 | 6.04 | 6.01 | 5.14 | 4.72 | 5.42 | 6.45 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,409,422K ÷ ($1,020,680K – $394,162K)
= 3.85
Working capital turnover measures how efficiently a company utilizes its working capital to generate sales. A higher ratio indicates efficient utilization of working capital, while a lower ratio may signal inefficiency.
Analyzing the working capital turnover of Skyline Corporation from March 31, 2020, to December 31, 2024, shows fluctuations in the ratio over time. The ratio was relatively high at 6.45 on March 31, 2020, indicating Skyline was efficient in converting its working capital into sales. However, the ratio decreased to 4.08 on September 30, 2022, reflecting a decline in working capital efficiency.
From March 31, 2023, to June 30, 2024, the working capital turnover ratio remained below 4, suggesting a prolonged period of working capital inefficiency. This could indicate challenges in managing working capital effectively to support sales growth or a need for improved inventory and receivables management.
Overall, the trend in Skyline Corporation's working capital turnover ratio indicates fluctuations in working capital efficiency over the period analyzed. Further investigation into the company's working capital management practices and operational efficiency may be warranted to address the fluctuations in the ratio and improve overall financial performance.
Peer comparison
Dec 31, 2024