Synnex Corporation (SNX)

Working capital turnover

		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	Aug 31, 2019	May 31, 2019	Feb 28, 2019
Revenue (ttm)	US$ in thousands	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	22,664,770	21,412,120	20,685,810
Total current assets	US$ in thousands	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	7,202,490	7,015,120	6,429,150
Total current liabilities	US$ in thousands	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	4,578,680	4,461,220	3,880,480
Working capital turnover		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	8.64	8.38	8.12

February 29, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $57,468,600K ÷ ($18,580,700K – $15,254,900K)
= 17.28

The working capital turnover ratio for Synnex Corporation has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher ratio typically suggests that the company is efficiently managing its working capital.

From the data provided, we can observe that the working capital turnover ratio has generally been trending upwards, indicating an improvement in the company's efficiency in utilizing its working capital. The ratio ranged from a low of 3.95 in August 2021 to a high of 17.86 in November 2023.

A significant increase in the working capital turnover ratio signifies that Synnex Corporation has been able to generate more sales revenue relative to its working capital, which could be attributed to effective management of inventory, accounts receivable, and accounts payable. Investors and stakeholders may view this positively as it reflects improved operational efficiency and financial performance.

However, it is essential to consider the industry norms and benchmark the ratio against competitors to gain a better perspective on Synnex Corporation's performance. Monitoring this ratio over time can provide insights into the company's financial health and efficiency in managing its working capital.