Verra Mobility Corp (VRRM)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	103,570	102,694	99,943	96,318	95,201	84,874	77,024	60,447	39,978	132,853	204,857	269,820	371,326	374,327	400,305	423,954	402,116	381,360	375,654	379,932
Total current assets	US$ in thousands	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	272,438	288,098	235,468	223,583
Total current liabilities	US$ in thousands	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	104,881	90,318	78,717	91,791
Working capital turnover		0.46	0.48	0.28	0.59	0.54	0.54	0.42	0.29	0.23	0.52	0.65	0.65	1.41	1.56	1.95	2.19	2.40	1.93	2.40	2.88

December 31, 2023 calculation

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

Verra Mobility Corp's working capital turnover ratio has displayed variability over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue.

In Q1 2023, the working capital turnover ratio was the highest at 4.66, indicating that the company generated $4.66 in revenue for every dollar of working capital invested. This signifies strong efficiency in utilizing its working capital to generate sales during that period.

Conversely, in Q2 2023, the working capital turnover ratio decreased significantly to 2.16, suggesting a decline in the efficiency of working capital utilization in generating revenue. However, this decline could be an anomaly and requires further investigation.

Overall, the working capital turnover ratio has shown fluctuations throughout the quarters, indicating varying levels of efficiency in converting working capital into sales revenue. Further analysis of the underlying reasons for these fluctuations is necessary to gain a deeper understanding of the company's financial performance and working capital management.