Woodward Inc (WWD)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,334,880 | 2,865,510 | 2,353,550 | 2,214,170 | 2,467,570 |
| Total current assets | US$ in thousands | 1,743,610 | 1,469,450 | 1,311,970 | 1,464,720 | 1,210,860 |
| Total current liabilities | US$ in thousands | 923,510 | 617,196 | 539,113 | 366,257 | 392,332 |
| Working capital turnover | 4.07 | 3.36 | 3.05 | 2.02 | 3.01 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,334,880K ÷ ($1,743,610K – $923,510K)
= 4.07
Woodward Inc's working capital turnover has shown a consistent increase over the past five years, indicating an improvement in the efficiency of its working capital management. The working capital turnover ratio has increased from 3.01 in 2020 to 4.07 in 2024, signaling a positive trend in utilizing working capital to generate sales revenue. This implies that the company is able to efficiently convert its working capital into sales revenue, which is a positive sign of operational efficiency and effective management of its current assets and liabilities. The upward trend in the working capital turnover ratio suggests that Woodward Inc has been able to effectively manage its working capital to support its business operations and drive revenue growth over the years.