Synnex Corporation (SNX)

Working capital turnover

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Revenue	US$ in thousands	57,555,400	62,343,800	31,614,200	19,977,200	19,070,000
Total current assets	US$ in thousands	20,084,400	20,500,900	17,734,100	8,769,130	7,452,990
Total current liabilities	US$ in thousands	16,738,800	16,428,700	14,233,500	5,630,090	4,607,120
Working capital turnover		17.20	15.31	9.03	6.36	6.70

November 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $57,555,400K ÷ ($20,084,400K – $16,738,800K)
= 17.20

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. It is calculated by dividing net sales by average working capital. A higher ratio indicates that the company is effectively using its working capital to support sales activities.

Looking at the historical trend of TD Synnex Corp's working capital turnover, we see a steady increase from 8.35 in 2019 to 17.20 in 2023. This indicates a significant improvement in the company's efficiency in using its working capital to generate sales over the years.

The increasing trend suggests that TD Synnex Corp has been able to more effectively utilize its working capital to support its sales growth, which can be a positive indicator of operational efficiency and effective management of working capital. It shows that the company is efficiently managing its short-term assets and liabilities to support its sales activities.

Overall, the increasing trend of the working capital turnover ratio for TD Synnex Corp reflects positively on the company's ability to generate sales using its working capital, indicating improved operational efficiency and effective management of working capital over the years.