Vestis Corporation (VSTS)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,825,290 | 2,687,000 | 2,456,580 | 2,562,000 |
| Total current assets | US$ in thousands | 1,019,960 | 987,281 | 931,924 | — |
| Total current liabilities | US$ in thousands | 395,525 | 402,195 | 383,322 | — |
| Working capital turnover | 4.52 | 4.59 | 4.48 | — |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,825,290K ÷ ($1,019,960K – $395,525K)
= 4.52
The working capital turnover of Vestis Corporation has been relatively stable over the past three years, with values of 4.52 in 2023, 4.59 in 2022, and 4.48 in 2021. This ratio indicates that for each dollar of working capital invested in the company, Vestis generates sales revenue between 4.48 to 4.59 times annually.
A higher working capital turnover ratio generally suggests that the company is able to efficiently utilize its working capital to generate sales. While the slight fluctuations in the ratio indicate some variability in the company's efficiency in managing its working capital, overall, Vestis Corporation has shown consistent performance in this aspect. Despite the lack of data for 2020, the trend over the last three years suggests effective management of working capital to support the company's revenue generation. An upward or stable trend in the working capital turnover ratio is usually seen as a positive indicator of a company's operational efficiency and financial health.
Peer comparison
Sep 30, 2023