Ziff Davis Inc (ZD)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 | 1,050,460 |
| Total current assets | US$ in thousands | 1,190,990 | 1,084,270 | 1,300,670 | 622,843 | 886,890 |
| Total current liabilities | US$ in thousands | 431,833 | 432,448 | 497,238 | 882,555 | 833,104 |
| Working capital turnover | 1.80 | 2.13 | 1.76 | — | 19.53 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,364,030K ÷ ($1,190,990K – $431,833K)
= 1.80
The working capital turnover ratio for Ziff Davis Inc has fluctuated over the past five years, with values of 1.80 in 2023, 2.13 in 2022, and 1.76 in 2021. In 2020, the working capital turnover ratio is not available based on the data provided, and in 2019, the ratio was unusually high at 25.51.
A high working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales. In contrast, a low ratio may suggest that the company is not effectively utilizing its working capital. The significant decrease in the ratio from 25.51 in 2019 to around 2 in the following years is worth investigating, as it indicates a substantial change in working capital management efficiency.
It would be beneficial for stakeholders to further analyze the reasons behind this fluctuation and investigate any underlying factors that may have influenced the company's working capital turnover ratios. This analysis can provide valuable insights into the company's liquidity management and operational efficiency over the years.