Wingstop Inc (WING)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	625,807	460,055	357,521	282,502	248,811
Total current assets	US$ in thousands	395,618	144,344	226,672	70,149	72,620
Total current liabilities	US$ in thousands	87,443	71,004	62,412	39,681	50,473
Working capital turnover		2.03	6.27	2.18	9.27	11.23

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $625,807K ÷ ($395,618K – $87,443K)
= 2.03

Based on the data provided, the working capital turnover for Wingstop Inc has exhibited fluctuations over the past five years. In December 2020, Wingstop's working capital turnover was 11.23, indicating that the company generated 11.23 times the revenue from the utilization of its working capital during that period.

However, there was a notable decrease in the working capital turnover to 9.27 by the end of December 2021. This suggests a slight reduction in the efficiency of Wingstop's working capital management in generating revenue.

In December 2022, there was a significant decline in the working capital turnover to 2.18, indicating a substantial decrease in the company's ability to generate revenue from its working capital.

By December 2023, there was a partial recovery in the working capital turnover to 6.27, showing an improvement in efficiency compared to the previous year.

Nevertheless, in December 2024, the working capital turnover dropped to 2.03, indicating a decrease in the efficiency of Wingstop's working capital management in generating revenue.

Overall, Wingstop Inc's working capital turnover has displayed volatility, with varying levels of efficiency in utilizing its working capital to generate revenue over the past five years. This metric is essential for evaluating the company's operational efficiency and liquidity management.