Agilent Technologies Inc (A)
Working capital turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,784,000 | 6,774,000 | 6,236,000 | 5,271,000 | 5,073,000 |
| Total current assets | US$ in thousands | 4,186,000 | 3,778,000 | 3,799,000 | 3,415,000 | 3,189,000 |
| Total current liabilities | US$ in thousands | 1,603,000 | 1,861,000 | 1,708,000 | 1,467,000 | 2,080,000 |
| Working capital turnover | 2.63 | 3.53 | 2.98 | 2.71 | 4.57 |
October 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,784,000K ÷ ($4,186,000K – $1,603,000K)
= 2.63
The working capital turnover ratio measures a company's ability to efficiently use its working capital to generate sales. Agilent Technologies Inc.'s working capital turnover has shown fluctuations over the past five years.
In 2019, Agilent had a high working capital turnover of 4.66, indicating that the company effectively utilized its working capital to generate sales. However, this ratio dropped to 2.74 in 2020, suggesting a decrease in efficiency in the utilization of working capital.
In 2021, there was a slight improvement as the ratio increased to 3.02, but in 2022, it substantially rose to 3.57, indicating a more efficient use of working capital to generate sales. However, by 2023, the working capital turnover ratio decreased to 2.65, showing a decline in the efficiency of Agilent's working capital utilization to generate sales.
The fluctuating trend in Agilent's working capital turnover ratio indicates changes in the company's ability to efficiently convert its working capital into revenue. It would be important for stakeholders to further investigate the reasons behind these fluctuations in order to understand their implications for the company's overall financial performance.
Peer comparison
Oct 31, 2023