Woodward Inc (WWD)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,865,510 | 2,353,550 | 2,214,170 | 2,467,570 | 2,857,210 |
| Total current assets | US$ in thousands | 1,469,450 | 1,311,970 | 1,464,720 | 1,210,860 | 1,271,230 |
| Total current liabilities | US$ in thousands | 617,196 | 539,113 | 366,257 | 392,332 | 707,436 |
| Working capital turnover | 3.36 | 3.05 | 2.02 | 3.01 | 5.07 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,865,510K ÷ ($1,469,450K – $617,196K)
= 3.36
Woodward Inc's working capital turnover has been fluctuating over the past five years. The working capital turnover ratio measures how effectively a company is using its working capital to generate sales revenue. A higher ratio indicates that the company is efficiently using its working capital to support sales activities.
In 2019, Woodward Inc had a high working capital turnover of 5.14, indicating that for every dollar of working capital, the company generated $5.14 of sales revenue. This suggests a high level of efficiency in utilizing its working capital to drive sales.
However, in 2020, the working capital turnover ratio decreased to 3.05, which may indicate a decrease in efficiency in using working capital to support sales. The ratio then increased to 3.08 in 2021, showing a slight improvement but still below the 2019 level.
In 2022, the working capital turnover further improved to 3.42, signaling better efficiency in managing working capital to generate sales. This trend indicates a potential focus on optimizing working capital management.
Overall, Woodward Inc's working capital turnover ratio has displayed fluctuations over the past five years, with the company experiencing both highs and lows. It is important for the company to consistently monitor and manage its working capital to ensure efficient utilization in supporting sales activities and maintaining a competitive position within the industry.