Simulations Plus Inc (SLP)

Working capital turnover

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Revenue (ttm)	US$ in thousands	72,188	68,509	64,668	62,113	59,577	55,682	54,407	53,453	53,906	52,013	49,831	48,182	46,466	46,165	45,686	42,889	41,589	40,075	37,714	35,836
Total current assets	US$ in thousands	39,341	135,616	127,957	129,687	130,372	137,309	131,474	148,734	146,790	144,854	143,626	139,906	139,313	138,698	135,553	131,232	129,092	22,184	24,676	23,093
Total current liabilities	US$ in thousands	12,069	11,320	14,528	8,588	11,987	9,022	6,002	8,039	7,735	5,915	9,004	9,615	11,574	7,340	6,541	5,477	5,506	7,785	5,481	5,633
Working capital turnover		2.65	0.55	0.57	0.51	0.50	0.43	0.43	0.38	0.39	0.37	0.37	0.37	0.36	0.35	0.35	0.34	0.34	2.78	1.96	2.05

August 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $72,188K ÷ ($39,341K – $12,069K)
= 2.65

The working capital turnover ratio for Simulations Plus Inc has shown fluctuations over the periods indicated in the table.

The ratio stood at 2.65 as of August 31, 2024, indicating that the company generated 2.65 times its working capital in revenue during that period. This was a significant increase compared to the previous quarter, where the ratio was 0.55.

The company's working capital turnover has historically ranged between 0.34 to 2.78 over the past few years. The ratio tends to vary depending on the efficiency of the company in utilizing its working capital to generate sales.

Overall, the upward trend in the working capital turnover ratio from 0.34 in November 2020 to 2.65 in August 2024 suggests an improvement in the company's ability to generate revenue using its working capital efficiently. However, it is essential to monitor the ratio continuously to assess the company's operational efficiency and liquidity management.