Williams-Sonoma Inc (WSM)
Working capital turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,711,550 | 7,528,270 | 8,006,540 | 8,071,880 | 8,265,180 | 7,848,850 | 7,432,520 | 7,334,320 | 7,933,750 | 8,524,220 | 8,854,180 | 9,291,300 | 8,975,760 | 8,413,910 | 8,112,570 | 8,421,030 | 8,784,520 | 8,940,830 | 8,997,940 | 8,445,250 |
| Total current assets | US$ in thousands | 2,754,610 | 2,486,780 | 2,744,300 | 2,673,980 | 2,719,800 | 2,719,800 | 2,347,340 | 2,347,340 | 2,032,130 | 2,032,130 | 1,898,830 | 2,036,080 | 2,036,080 | 2,060,730 | 2,060,730 | 1,928,720 | 1,928,850 | 1,928,850 | 2,323,890 | 2,323,890 |
| Total current liabilities | US$ in thousands | 1,911,970 | 1,845,310 | 1,758,800 | 1,720,960 | 1,880,320 | 1,880,320 | 1,788,990 | 1,788,990 | 1,663,850 | 1,663,850 | 1,701,820 | 1,636,450 | 1,636,450 | 1,854,720 | 1,854,720 | 1,811,040 | 1,743,640 | 1,743,640 | 1,771,690 | 1,771,690 |
| Working capital turnover | 9.15 | 11.74 | 8.12 | 8.47 | 9.85 | 9.35 | 13.31 | 13.14 | 21.54 | 23.15 | 44.94 | 23.25 | 22.46 | 40.84 | 39.38 | 71.56 | 47.43 | 48.27 | 16.29 | 15.29 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,711,550K ÷ ($2,754,610K – $1,911,970K)
= 9.15
The working capital turnover of Williams-Sonoma Inc has exhibited fluctuations over the period from January 2022 to January 2025. The ratio indicates how efficiently the company is utilizing its working capital to generate sales.
The ratio started at a relatively high level in January 2022, indicating that Williams-Sonoma was effectively leveraging its working capital to generate revenue. The ratio increased further by April 2022 and May 2022, reaching its peak at 71.56 in July 2022, demonstrating a significant improvement in working capital efficiency.
However, from October 2022 to January 2023, there was a noticeable decline in the working capital turnover ratio, indicating a potential decrease in efficiency in utilizing working capital to support sales. The ratio fluctuated in the subsequent periods but remained relatively stable around 10-25.
The significant drop in the working capital turnover ratio in October 2023 and January 2024 to below 10 suggests a potential inefficiency in managing working capital during these periods. There was a slight improvement in April 2024, followed by a slight decline in July 2024. The ratio increased slightly in October 2024, indicating a slight improvement in working capital efficiency.
Overall, the working capital turnover ratio fluctuated during the period under review, with periods of both high efficiency and inefficiency in managing working capital to generate sales. Regular monitoring and analysis of this ratio can help assess the effectiveness of the company's working capital management strategies.
See also:
Williams-Sonoma Inc Working Capital Turnover (Quarterly Data)