Wingstop Inc (WING)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	460,055	437,865	413,433	390,037	357,521	324,682	297,794	288,017	282,502	273,756	271,960	264,065	248,811	238,715	224,602	207,059	199,676	186,999	175,370	163,845
Total current assets	US$ in thousands	144,344	132,843	238,183	249,402	226,672	223,091	209,479	324,233	70,149	88,802	84,708	81,144	72,620	82,285	67,456	52,848	30,190	32,183	33,416	34,415
Total current liabilities	US$ in thousands	71,004	67,332	58,788	79,311	62,412	60,655	52,665	171,368	39,681	59,309	51,645	48,178	50,473	57,420	47,579	45,291	32,929	36,991	23,861	29,019
Working capital turnover		6.27	6.68	2.30	2.29	2.18	2.00	1.90	1.88	9.27	9.28	8.23	8.01	11.23	9.60	11.30	27.40	—	—	18.35	30.36

December 31, 2023 calculation

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

The working capital turnover ratio for Wingstop Inc has shown fluctuation over the periods analyzed. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

From December 2019 to June 2020, the company experienced a steady increase in its working capital turnover, indicating improved efficiency in managing its working capital to generate revenue. However, from September 2020 to March 2021, the ratio spiked significantly, reaching its peak in December 2020 at 11.23, suggesting a substantial increase in the company's ability to convert working capital into sales.

Subsequently, from March 2021 to June 2022, the working capital turnover ratio declined gradually, indicating a potential decrease in efficiency in utilizing working capital to generate revenue. However, from September 2022 to December 2023, there was a recovery in the ratio, albeit with fluctuations, with the ratio ranging between 6.27 and 9.28.

Overall, the company's working capital turnover ratio has displayed variability, indicating changes in the efficiency of utilizing working capital to generate sales revenue over the periods analyzed. It would be essential for Wingstop Inc to closely monitor and manage its working capital to ensure optimal efficiency in its operations.