Agilent Technologies Inc (A)
Working capital turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,531,000 | 6,784,000 | 6,774,000 | 6,236,000 | 5,271,000 |
| Total current assets | US$ in thousands | 3,959,000 | 4,186,000 | 3,778,000 | 3,799,000 | 3,415,000 |
| Total current liabilities | US$ in thousands | 1,895,000 | 1,603,000 | 1,861,000 | 1,708,000 | 1,467,000 |
| Working capital turnover | 3.16 | 2.63 | 3.53 | 2.98 | 2.71 |
October 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,531,000K ÷ ($3,959,000K – $1,895,000K)
= 3.16
Agilent Technologies Inc's working capital turnover has fluctuated over the past five years, ranging from 2.63 to 3.53. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to generate more revenue.
In 2024, Agilent's working capital turnover improved to 3.16 from 2.63 in 2023, indicating that the company made more sales revenue per unit of working capital invested. This suggests improved efficiency in managing its working capital in the most recent year.
Comparing 2024 to 2022 and 2021, we can see that Agilent's working capital turnover was higher, indicating a better utilization of working capital to generate sales revenue during those years. However, the ratio dropped slightly in 2023 before recovering in 2024.
Overall, Agilent Technologies Inc has shown varying levels of efficiency in utilizing its working capital to generate sales revenue over the past five years, with some fluctuations but an overall positive trend.
Further analysis of the company's operational and financial strategies would be necessary to fully understand the drivers behind the changes in working capital turnover over the years.
Peer comparison
Oct 31, 2024