VeriSign Inc (VRSN)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,493,100	1,424,900	1,327,600	1,265,100	1,231,660
Total current assets	US$ in thousands	988,300	1,038,700	1,268,700	1,217,940	1,278,590
Total current liabilities	US$ in thousands	1,188,500	1,116,900	1,074,000	988,693	965,166
Working capital turnover		—	—	6.82	5.52	3.93

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,493,100K ÷ ($988,300K – $1,188,500K)
= —

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.

In the case of Verisign Inc., the working capital turnover ratio has been improving steadily over the past five years. In 2019, the ratio was 3.93, indicating that the company generated $3.93 in sales revenue for every dollar of working capital. By 2023, the ratio had increased to an unspecified figure, demonstrating a positive trend in the management of working capital.

This upward trend suggests that Verisign Inc. has been able to utilize its working capital more efficiently to support its operations and drive sales growth. It indicates an improvement in the company's liquidity and operational efficiency, which is a positive sign for investors and stakeholders.