Vestis Corporation (VSTS)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,805,396 | 2,837,440 | 2,848,575 | 2,842,513 | 2,825,286 | 2,792,558 | 2,762,895 | |||
| Total current assets | US$ in thousands | 787,389 | 1,019,960 | 1,004,750 | 1,027,650 | 1,019,960 | 1,039,340 | 1,035,010 | 23,736 | 987,281 | — |
| Total current liabilities | US$ in thousands | 456,102 | 429,792 | 400,154 | 393,805 | 395,525 | 367,298 | 379,244 | 368,724 | 402,195 | — |
| Working capital turnover | 8.47 | 4.81 | 4.71 | 4.48 | 4.52 | 4.16 | 4.21 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,805,396K ÷ ($787,389K – $456,102K)
= 8.47
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio suggests better efficiency in managing working capital.
Looking at the data provided for Vestis Corporation, we observe fluctuations in the working capital turnover ratio over the recent quarters.
- In September 2024, the working capital turnover ratio was 8.47, indicating a significant increase compared to the previous quarter. This may suggest that Vestis efficiently utilized its working capital to generate sales during this period.
- In June 2024, the ratio decreased to 4.81 from the peak in the previous quarter, indicating a decline in efficiency in utilizing working capital compared to the prior period.
- The ratio remained relatively stable around the 4.5 mark in the quarters from March 2024 to September 2023, suggesting a consistent level of efficiency in working capital turnover during that period.
- Overall, the working capital turnover ratio for Vestis Corporation has shown variability but generally indicates a reasonable level of efficiency in utilizing working capital to support sales activities over the analyzed period.
It would be essential for Vestis to further analyze the factors contributing to the fluctuations in the working capital turnover ratio to identify areas for improvement in managing working capital efficiently and optimizing its operations.
Peer comparison
Sep 30, 2024