Thryv Holdings Inc (THRY)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 916,961 | 1,202,390 | 1,113,380 | 1,109,440 | 1,421,370 |
| Total current assets | US$ in thousands | 266,868 | 378,316 | 370,645 | 369,698 | 478,569 |
| Total current liabilities | US$ in thousands | 263,190 | 300,492 | 307,134 | 207,400 | 257,441 |
| Working capital turnover | 249.31 | 15.45 | 17.53 | 6.84 | 6.43 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $916,961K ÷ ($266,868K – $263,190K)
= 249.31
The working capital turnover ratio for Thryv Holdings Inc has shown a significant increase over the past four years. In particular, the ratio has improved from being 6.84 in 2020 to 17.53 in 2021, further increasing to 15.45 in 2022, and dramatically jumping to 249.31 in 2023.
A high working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales revenue. Thryv Holdings Inc's substantial increase in this ratio from 6.84 in 2020 to 249.31 in 2023 suggests a significant improvement in the company's ability to effectively manage its working capital.
This improved efficiency can be attributed to various factors such as better inventory management, enhanced receivables collection processes, or a more streamlined payables system. Overall, the trend of increasing working capital turnover ratios over the past four years reflects positively on Thryv Holdings Inc's operational efficiency and liquidity management.