WD-40 Company (WDFC)
Working capital turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 589,498 | 532,231 | 517,489 | 488,109 | 408,498 |
| Total current assets | US$ in thousands | 255,441 | 248,525 | 249,640 | 241,219 | 185,154 |
| Total current liabilities | US$ in thousands | 103,500 | 88,842 | 110,820 | 85,936 | 60,116 |
| Working capital turnover | 3.88 | 3.33 | 3.73 | 3.14 | 3.27 |
August 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $589,498K ÷ ($255,441K – $103,500K)
= 3.88
The working capital turnover of WD-40 Company has shown variability over the past five years. In particular, there has been an increasing trend in the turnover ratio from 3.27 in 2020 to 3.88 in 2024, indicating that the company has become more efficient in utilizing its working capital to generate revenue.
A working capital turnover ratio above 1 indicates that the company is effectively using its working capital to support its sales operations. WD-40 Company's ratios all exceed 1, which is a positive sign.
The upward trend in the working capital turnover ratio suggests that WD-40 Company has been able to improve its operational efficiency and manage its working capital more effectively over the years. This could be attributed to better inventory management, efficient accounts receivable collection, or effective supplier payment practices. Overall, the increasing trend in the working capital turnover ratio reflects positively on the company's ability to generate revenue relative to its investment in working capital.
Peer comparison
Aug 31, 2024