Bio-Techne Corp (TECH)

Working capital turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,159,360	1,137,170	1,094,290	917,080	1,458,180
Total current assets	US$ in thousands	617,419	621,482	605,556	510,606	520,920
Total current liabilities	US$ in thousands	159,379	128,509	176,018	152,284	106,668
Working capital turnover		2.53	2.31	2.55	2.56	3.52

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,159,360K ÷ ($617,419K – $159,379K)
= 2.53

Based on the data provided for Bio-Techne Corp's working capital turnover over the past five years, we observe fluctuations in the efficiency of the company in utilizing its working capital to generate sales.

The working capital turnover ratio measures how effectively a company is able to generate sales revenue from its working capital. A higher ratio indicates a more efficient use of working capital in generating sales.

In the case of Bio-Techne Corp, we note that the working capital turnover ratio ranged from 2.31 to 3.52 over the period from June 30, 2020, to June 30, 2024. The ratio peaked at 3.52 in 2020, indicating a strong ability to generate sales from working capital. However, this efficiency declined in subsequent years, reaching a low of 2.31 in 2023 before recovering slightly to 2.53 in 2024.

The fluctuations in the working capital turnover ratio suggest varying levels of efficiency in managing working capital and generating sales revenue over the years. It is essential for the company to closely monitor and manage its working capital levels to ensure optimal efficiency in utilizing these resources to drive sales growth and overall financial performance.