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