Synnex Corporation (SNX)

Working capital turnover

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 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	58,452,500	57,015,200	56,291,100	57,468,600	59,741,300	60,690,100	61,999,300	62,343,900	61,707,200	51,558,160	42,145,180	31,614,190	22,121,730	22,221,030	20,835,140	19,977,150	20,391,740	21,244,640	22,452,530	23,576,000
Total current assets	US$ in thousands	21,324,700	20,057,800	18,583,700	18,580,700	20,084,400	19,168,500	19,965,200	20,500,900	19,882,500	18,535,400	18,948,900	17,734,100	9,603,420	7,239,760	6,804,610	8,769,130	8,564,150	7,968,620	6,947,460	7,452,990
Total current liabilities	US$ in thousands	17,221,200	15,990,400	14,703,100	15,254,900	16,738,800	15,532,000	15,790,600	16,428,700	15,930,900	14,659,700	15,207,000	14,233,500	4,007,390	4,270,330	3,968,310	5,630,090	5,632,150	5,229,300	4,227,150	4,607,120
Working capital turnover		14.24	14.02	14.51	17.28	17.86	16.69	14.85	15.31	15.62	13.30	11.26	9.03	3.95	7.48	7.35	6.36	6.95	7.76	8.25	8.28

November 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $58,452,500K ÷ ($21,324,700K – $17,221,200K)
= 14.24

Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio typically indicates that the company is effectively managing its working capital to support its sales operations.

Analyzing the working capital turnover of Synnex Corporation over the past few years, we observe fluctuations in the ratio. From November 2019 to November 2021, the ratio remained relatively stable, ranging between 6.36 and 9.03. This indicates that Synnex was maintaining a consistent level of efficiency in utilizing its working capital to generate sales during this period.

However, a significant increase in the working capital turnover ratio was observed from February 2022 onwards, with the ratio consistently rising to reach 17.86 by November 2023. This upward trend suggests that Synnex improved its working capital management practices, leading to a more efficient utilization of working capital to support sales activities.

Although there was a slight decrease in the ratio by August 2024, the working capital turnover remained relatively high, indicating continued strong efficiency in converting working capital into sales revenue for Synnex Corporation.

Overall, the trend in Synnex's working capital turnover ratio showcases an improvement in the company's ability to efficiently deploy its working capital to drive sales growth and operational performance over the analyzed period.