Ziff Davis Inc (ZD)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,364,028 | 1,370,843 | 1,371,731 | 1,383,071 | 1,390,997 | 1,402,925 | 1,416,196 | 1,420,133 | 1,416,722 | 1,392,149 | 1,310,017 | 1,219,080 | 1,158,829 | 1,180,362 | 1,251,491 | 1,323,567 | 1,372,054 | 1,312,525 | 1,261,108 | 1,226,565 |
| Total current assets | US$ in thousands | 1,190,990 | 1,063,660 | 1,074,860 | 1,106,580 | 1,084,270 | 975,304 | 1,025,080 | 1,192,930 | 1,300,670 | 888,273 | 661,978 | 675,503 | 622,843 | 807,324 | 853,145 | 782,095 | 886,890 | 344,911 | 365,335 | 435,561 |
| Total current liabilities | US$ in thousands | 431,833 | 419,498 | 436,043 | 441,179 | 432,448 | 416,455 | 484,047 | 432,191 | 497,238 | 1,028,400 | 845,019 | 867,534 | 882,555 | 768,913 | 772,181 | 368,681 | 833,104 | 410,053 | 387,713 | 348,523 |
| Working capital turnover | 1.80 | 2.13 | 2.15 | 2.08 | 2.13 | 2.51 | 2.62 | 1.87 | 1.76 | — | — | — | — | 30.73 | 15.46 | 3.20 | 25.51 | — | — | 14.09 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,364,028K ÷ ($1,190,990K – $431,833K)
= 1.80
The working capital turnover ratio measures a company's ability to utilize its working capital efficiently to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital resources.
Analyzing Ziff Davis Inc's working capital turnover ratios over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the working capital turnover was 1.80, indicating that for every $1 of working capital, the company generated $1.80 in sales revenue during that quarter.
The trend shows some variability, with ratios ranging from 1.75 to 2.30 over the last eight quarters. The highest working capital turnover ratio was recorded in Q2 2022 at 2.30, suggesting an efficient utilization of working capital to generate sales. In contrast, the lowest ratio was seen in Q1 2022 at 1.75, indicating a lower efficiency in converting working capital into sales during that period.
Overall, Ziff Davis Inc's working capital turnover ratios have shown some fluctuations, and it is important for the company to consistently monitor and manage its working capital levels to ensure optimal efficiency in generating sales revenue.