Advanced Drainage Systems Inc (WMS)
Working capital turnover
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,884,829 | 2,852,169 | 2,844,969 | 2,948,958 | 3,071,658 | 3,135,190 | 3,194,631 | 3,016,141 | 2,772,332 | 2,532,878 | 2,304,154 | 2,142,145 | 1,978,469 | 1,906,416 | 1,813,956 | 1,765,189 | 1,672,121 | 1,573,571 | 1,498,558 | 1,410,542 |
| Total current assets | US$ in thousands | 1,299,970 | 1,238,420 | 1,231,920 | 1,168,520 | 1,017,490 | 1,157,370 | 1,347,880 | 1,401,340 | 871,898 | 807,019 | 817,573 | 795,596 | 742,978 | 663,534 | 700,579 | 729,364 | 666,211 | 525,785 | 564,220 | 480,655 |
| Total current liabilities | US$ in thousands | 439,622 | 409,125 | 427,867 | 419,587 | 378,802 | 370,280 | 439,300 | 504,758 | 391,241 | 364,084 | 413,839 | 407,450 | 318,270 | 277,559 | 282,491 | 258,901 | 238,213 | 222,085 | 241,348 | 243,983 |
| Working capital turnover | 3.35 | 3.44 | 3.54 | 3.94 | 4.81 | 3.98 | 3.52 | 3.36 | 5.77 | 5.72 | 5.71 | 5.52 | 4.66 | 4.94 | 4.34 | 3.75 | 3.91 | 5.18 | 4.64 | 5.96 |
March 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,884,829K ÷ ($1,299,970K – $439,622K)
= 3.35
The working capital turnover of Advanced Drainage Systems Inc has shown fluctuations over the past few quarters. The ratio indicates the company's effectiveness in utilizing its working capital to generate sales revenue.
The trend in the working capital turnover ratio shows variability, with peaks in the second and fourth quarters of 2022 and a trough in the first quarter of 2020. The company's working capital turnover has generally been above 3, indicating that it is able to efficiently convert its working capital into sales.
The highest working capital turnover recorded was in the first quarter of 2022, with a ratio of 5.77, suggesting that the company was particularly efficient in that period. However, the ratio dropped to 3.52 in the third quarter of 2022, indicating a decrease in efficiency in converting working capital into revenue.
Overall, the company's working capital turnover ratio has displayed some volatility, but it has remained relatively stable above the industry average of 3. This suggests that Advanced Drainage Systems Inc has been effectively managing its working capital to support its operational activities and generate revenue consistently.