Verra Mobility Corp (VRRM)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 879,207 868,720 853,102 835,137 817,310 792,367 780,090 763,116 741,598 725,508 689,947 631,117 550,590 480,773 415,586 366,738 393,593 405,891 437,223 466,989
Total current assets US$ in thousands 393,999 529,015 444,528 433,081 439,538 411,292 542,586 332,433 362,594 317,443 348,371 362,979 348,069 372,131 421,556 482,799 328,037 311,585 270,698 265,906
Total current liabilities US$ in thousands 199,741 202,493 175,299 159,445 214,773 197,567 180,809 168,637 186,809 161,087 165,505 154,145 175,191 116,930 106,743 70,430 64,040 72,014 65,020 72,003
Working capital turnover 4.53 2.66 3.17 3.05 3.64 3.71 2.16 4.66 4.22 4.64 3.77 3.02 3.18 1.88 1.32 0.89 1.49 1.69 2.13 2.41

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $879,207K ÷ ($393,999K – $199,741K)
= 4.53

The working capital turnover ratio for Verra Mobility Corp has shown fluctuations over the analyzed periods. The ratio indicates how efficiently the company utilizes its working capital to generate revenue.

From March 31, 2020, to December 31, 2022, there was a general upward trend in the working capital turnover ratio, suggesting an improvement in the company's efficiency in utilizing its working capital to generate sales. The ratio increased from 2.41 to 4.22 during this period.

However, from March 31, 2023, to December 31, 2024, the working capital turnover ratio fluctuated within a range of 2.16 to 4.66. Notably, the ratio peaked at 4.66 on March 31, 2023, indicating a significant increase in efficiency, but it decreased to 2.66 on September 30, 2024.

Overall, Verra Mobility Corp's working capital turnover ratio has demonstrated variability, indicating fluctuations in the efficiency of its working capital management over the analyzed periods. Further analysis of the company's operational and financial factors may be required to understand the reasons behind these fluctuations and their impact on the company's performance.