Wingstop Inc (WING)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	460,055	357,521	282,502	248,811	199,676
Total current assets	US$ in thousands	144,344	226,672	70,149	72,620	30,190
Total current liabilities	US$ in thousands	71,004	62,412	39,681	50,473	32,929
Working capital turnover		6.27	2.18	9.27	11.23	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $460,055K ÷ ($144,344K – $71,004K)
= 6.27

Wingstop Inc's working capital turnover has fluctuated over the past five years, as follows:

- In 2023, the working capital turnover ratio was 6.27, indicating that the company generated $6.27 in revenue for every dollar of working capital invested. This represents a significant improvement compared to the previous year.

- In 2022, the ratio dropped to 2.18, suggesting a decrease in efficiency in utilizing working capital to generate sales. This might raise concerns about the company's ability to effectively manage its liquidity and working capital resources.

- The year 2021 saw a significant increase in the working capital turnover to 9.27, indicating a strong performance in converting working capital into sales. This could be a positive sign of effective working capital management and operational efficiency.

- In 2020, the ratio was even higher at 11.23, showing a further improvement from the previous year. A high working capital turnover ratio generally indicates that the company is efficiently using its working capital to support its operating activities and generate revenue.

- Unfortunately, there is no available data for 2019 to provide context for the trend in working capital turnover over the five-year period.

Overall, fluctuations in Wingstop Inc's working capital turnover ratio suggest varying efficiency levels in converting working capital into sales, with potential implications for the company's operational liquidity and resource management strategies.