Williams-Sonoma Inc (WSM)
Working capital turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,750,650 | 8,674,420 | 8,245,940 | 6,788,970 | 5,905,720 |
| Total current assets | US$ in thousands | 2,719,800 | 2,036,080 | 2,323,890 | 2,467,080 | 1,755,640 |
| Total current liabilities | US$ in thousands | 1,880,320 | 1,636,450 | 1,771,690 | 1,848,000 | 1,609,560 |
| Working capital turnover | 9.23 | 21.71 | 14.93 | 10.97 | 40.43 |
January 28, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,750,650K ÷ ($2,719,800K – $1,880,320K)
= 9.23
The working capital turnover for Williams-Sonoma Inc has fluctuated over the past five years, ranging from a low of 9.23 in January 28, 2024, to a high of 40.43 in February 2, 2020. The working capital turnover metric indicates the efficiency of the company in utilizing its working capital to generate sales revenue. A higher turnover ratio suggests that the company is effectively managing its working capital to support its sales operations.
In 2023, the working capital turnover was notably high at 21.71, indicating a significant improvement in the management of working capital compared to the other years analyzed. On the other hand, in 2020, the working capital turnover peaked at 40.43, reflecting a period of exceptionally efficient working capital management. The lowest turnover ratio observed in 2024 may indicate a decrease in the efficiency of utilizing working capital to generate sales.
Overall, the fluctuation in the working capital turnover ratio for Williams-Sonoma Inc suggests varying levels of efficiency in managing working capital across the years analyzed. Further analysis of factors impacting working capital management could provide insights into the company's operational performance and financial health.