Winnebago Industries Inc (WGO)
Working capital turnover
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,470,200 | 4,916,420 | 3,594,240 | 2,318,070 | 1,985,670 |
| Total current assets | US$ in thousands | 996,700 | 1,093,800 | 1,058,910 | 713,610 | 410,657 |
| Total current liabilities | US$ in thousands | 396,000 | 522,100 | 407,276 | 300,390 | 197,744 |
| Working capital turnover | 5.78 | 8.60 | 5.52 | 5.61 | 9.33 |
August 26, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,470,200K ÷ ($996,700K – $396,000K)
= 5.78
The working capital turnover ratio measures how efficiently a company uses its working capital to generate sales. Winnebago Industries, Inc.'s working capital turnover has fluctuated over the past five years, ranging from 5.57 to 9.33. The ratio peaked in 2019 at 9.33, indicating that for every dollar of working capital, the company generated $9.33 in sales. However, the ratio declined to 5.57 in 2021 before increasing again to 8.67 in 2022 and then dropping to 5.81 in 2023.
A higher working capital turnover ratio generally indicates better efficiency in utilizing working capital to generate sales, while a lower ratio suggests less effective utilization. The fluctuations in Winnebago's working capital turnover may indicate varying levels of efficiency in managing working capital over the years. Further analysis of the underlying factors affecting working capital and sales may be necessary to fully understand the dynamics of these fluctuations.
Peer comparison
Aug 26, 2023