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.