WD-40 Company (WDFC)
Working capital turnover
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 587,047 | 570,084 | 555,159 | 545,753 | 531,830 | 524,985 | 507,863 | 508,545 | 517,038 | 501,187 | 514,594 | 497,126 | 488,109 | 484,515 | 446,357 | 434,501 | 408,498 | 403,596 | 419,338 | 420,624 |
| Total current assets | US$ in thousands | 255,441 | 248,763 | 250,514 | 237,657 | 248,525 | 249,860 | 263,429 | 255,356 | 249,640 | 241,354 | 234,599 | 233,328 | 241,219 | 240,943 | 221,836 | 206,775 | 185,154 | 213,265 | 158,263 | 149,224 |
| Total current liabilities | US$ in thousands | 103,500 | 105,241 | 110,431 | 98,820 | 88,842 | 95,309 | 116,596 | 113,643 | 110,820 | 96,269 | 83,389 | 81,058 | 85,936 | 79,118 | 71,883 | 66,854 | 60,116 | 117,749 | 95,424 | 81,020 |
| Working capital turnover | 3.86 | 3.97 | 3.96 | 3.93 | 3.33 | 3.40 | 3.46 | 3.59 | 3.72 | 3.45 | 3.40 | 3.26 | 3.14 | 2.99 | 2.98 | 3.11 | 3.27 | 4.23 | 6.67 | 6.17 |
August 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $587,047K ÷ ($255,441K – $103,500K)
= 3.86
The working capital turnover ratio for WD-40 Company has fluctuated over the past few years, indicating varying efficiency levels in managing its working capital. The ratio measures how effectively the company is utilizing its working capital to generate sales.
From November 2019 to May 2020, there was a significant increase in the working capital turnover ratio, peaking at 6.67 in May 2020. This could suggest a period of improved efficiency in utilizing working capital to generate sales during this time.
Subsequently, there was a decline in the ratio, hitting a low of 2.98 in May 2021. This indicates a potential decrease in efficiency in utilizing working capital relative to generating sales during that period.
Overall, the company's working capital turnover ratio has shown some volatility but generally remains above 3, reflecting a consistent ability to generate sales relative to its working capital levels. However, it is important to monitor this ratio closely to ensure optimal management of working capital resources.
Peer comparison
Aug 31, 2024