Vestis Corporation (VSTS)
Working capital turnover
| 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 | 2,842,513 | 2,825,286 | 2,792,558 | 2,762,895 | |||
| Total current assets | US$ in thousands | 1,027,650 | 1,019,960 | 1,039,340 | 1,035,010 | 23,736 | 987,281 | — |
| Total current liabilities | US$ in thousands | 393,805 | 395,525 | 367,298 | 379,244 | 368,724 | 402,195 | — |
| Working capital turnover | 4.48 | 4.52 | 4.16 | 4.21 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,842,513K ÷ ($1,027,650K – $393,805K)
= 4.48
Vestis Corporation's working capital turnover has been relatively stable over the past four quarters, ranging from 4.16 to 4.52. This ratio indicates that the company is efficient in utilizing its working capital to generate sales revenue. A working capital turnover ratio of 4.48 means that for every dollar of working capital invested, the company generated $4.48 in sales. Vestis Corporation's consistent working capital turnover suggests that it effectively manages its current assets and liabilities to support its operational activities and generate revenue. Overall, the company's ability to efficiently convert working capital into sales reflects sound operational management and financial health.
Peer comparison
Dec 31, 2023