Ziff Davis Inc (ZD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,406,210 | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 |
| Total current assets | US$ in thousands | 1,272,070 | 1,190,990 | 1,084,270 | 1,300,670 | 622,843 |
| Total current liabilities | US$ in thousands | 899,647 | 431,833 | 432,448 | 497,238 | 882,555 |
| Working capital turnover | 3.78 | 1.80 | 2.13 | 1.76 | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,406,210K ÷ ($1,272,070K – $899,647K)
= 3.78
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. In the case of Ziff Davis Inc, the turnover ratio has shown fluctuations over the years.
In 2021, the ratio stood at 1.76, indicating that the company generated $1.76 in revenue for every dollar of working capital invested. The ratio improved to 2.13 in 2022, suggesting a more efficient use of working capital to drive sales. However, the ratio dropped to 1.80 in 2023 before significantly increasing to 3.78 in 2024.
The significant increase in the working capital turnover ratio in 2024 may indicate that Ziff Davis Inc has improved its efficiency in managing its working capital to generate higher sales. It is important to closely monitor future trends to understand if this improvement is sustainable and evaluate the overall financial health of the company.