Vista Outdoor Inc (VSTO)

Working capital turnover

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Revenue (ttm) US$ in thousands 2,750,022 2,726,732 2,795,423 2,902,920 3,020,596 3,101,405 3,153,565 3,158,303 3,018,778 2,814,090 2,595,078 2,392,181 2,207,600 2,037,387 1,881,229 1,741,466 1,717,908 1,806,933 1,845,732 1,945,474
Total current assets US$ in thousands 1,075,120 1,136,200 1,187,890 1,218,110 1,196,110 1,335,980 1,391,870 1,183,060 1,110,940 1,102,260 1,292,610 1,120,020 1,064,230 826,619 784,785 722,142 709,990 705,426 773,420 1,002,250
Total current liabilities US$ in thousands 385,298 440,032 517,451 522,001 453,871 559,584 611,435 420,415 393,873 417,417 395,193 364,383 370,817 328,249 319,039 269,127 246,701 243,509 277,419 338,193
Working capital turnover 3.99 3.92 4.17 4.17 4.07 3.99 4.04 4.14 4.21 4.11 2.89 3.17 3.18 4.09 4.04 3.84 3.71 3.91 3.72 2.93

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,750,022K ÷ ($1,075,120K – $385,298K)
= 3.99

The working capital turnover ratio for Vista Outdoor Inc has fluctuated over the past few quarters. It measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its operations.

In the most recent quarter, the working capital turnover ratio was 3.99, slightly lower than the previous quarter at 3.92. This suggests a moderate decrease in the efficiency of converting working capital into sales. However, the ratio remains relatively stable around the 4.00 mark in the previous quarters, indicating consistent performance in utilizing working capital.

A noticeable decrease in the ratio was observed in the third quarter of 2021 at 2.89, which could indicate potential inefficiencies in working capital management during that period. The subsequent quarters showed an improvement in the ratio, with a significant spike to 4.21 in the first quarter of 2022, indicating enhanced efficiency in utilizing working capital to drive sales.

Overall, Vista Outdoor Inc has demonstrated a fairly consistent performance in working capital turnover, with occasional fluctuations. It would be important for the company to continue monitoring and optimizing its working capital management practices to sustain or improve its efficiency in converting working capital into sales revenue.


Peer comparison

Mar 31, 2024