Urban Outfitters Inc (URBN)

Working capital turnover

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Revenue (ttm) US$ in thousands 5,141,360 5,044,760 4,939,370 4,850,560 4,788,820 4,741,910 4,698,940 4,673,270 4,548,755 4,303,975 4,142,162 3,787,708 3,434,248 3,501,798 3,519,660 3,678,723 3,969,181 3,939,611 3,925,675 3,955,800
Total current assets US$ in thousands 1,282,500 1,489,050 1,365,460 1,301,240 1,237,720 1,345,080 1,267,430 1,208,120 1,285,750 1,369,250 1,395,410 1,281,030 1,223,330 1,371,560 1,270,970 1,176,930 1,053,400 1,113,010 1,000,400 1,139,300
Total current liabilities US$ in thousands 994,205 1,048,920 957,476 927,676 890,374 1,008,440 966,885 920,155 981,473 1,049,000 946,365 891,600 906,132 946,898 771,216 883,577 638,770 711,052 626,133 648,179
Working capital turnover 17.83 11.46 12.11 12.98 13.79 14.09 15.63 16.23 14.95 13.44 9.22 9.73 10.83 8.25 7.04 12.54 9.57 9.80 10.49 8.05

January 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,141,360K ÷ ($1,282,500K – $994,205K)
= 17.83

The working capital turnover ratio for Urban Outfitters Inc has shown fluctuations over the past few quarters. The ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively using its current assets to support sales.

From the data provided, we can see that the working capital turnover ratio has varied between 7.04 and 17.83 over the past few quarters. The ratio peaked at 17.83 in the most recent quarter (January 31, 2024), signaling a strong efficiency in utilizing working capital to generate sales.

However, it's important to note that the ratio has shown some volatility, with fluctuations observed in previous quarters. For example, the ratio dropped to 7.04 in July 31, 2020, indicating a lower efficiency in utilizing working capital during that period.

Overall, Urban Outfitters Inc should strive for consistency and aim to maintain a higher working capital turnover ratio to demonstrate efficient utilization of current assets in supporting its sales activities.