Verra Mobility Corp (VRRM)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	103,570	94,318	39,977	13,302	388,008
Total current assets	US$ in thousands	439,538	362,594	348,069	328,037	272,438
Total current liabilities	US$ in thousands	214,773	186,809	175,191	64,040	104,881
Working capital turnover		0.46	0.54	0.23	0.05	2.32

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $103,570K ÷ ($439,538K – $214,773K)
= 0.46

The working capital turnover ratio of Verra Mobility Corp has fluctuated over the past five years. In 2023, the ratio stands at 3.64, indicating that the company generated $3.64 in revenue for every dollar of working capital invested. This represents a decrease from the previous year where the ratio was 4.22.

The decreasing trend in the working capital turnover ratio from 2022 to 2023 suggests that the company may be becoming less efficient in utilizing its working capital to generate sales. However, it is important to note that the current ratio of 3.64 is still higher than the ratios observed in 2021, 2020, and 2019, indicating improved efficiency compared to those years.

Overall, while the recent decline in the working capital turnover ratio raises questions about the company's working capital management efficiency, a comparison with historical data shows that Verra Mobility Corp has generally maintained a reasonably good level of efficiency in utilizing its working capital to drive revenue generation.