Agilent Technologies Inc (A)
Working capital turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,700,000 | 6,806,000 | 6,912,000 | 6,975,000 | 6,872,000 | 6,783,000 | 6,604,000 | 6,458,000 | 6,377,000 | 6,248,000 | 6,057,000 | 5,738,000 | 5,454,000 | 5,271,000 | 5,138,000 | 5,148,000 | 5,148,000 | 5,073,000 | 4,928,000 | 4,859,000 |
| Total current assets | US$ in thousands | 4,338,000 | 4,186,000 | 4,030,000 | 3,949,000 | 4,078,000 | 3,778,000 | 3,690,000 | 3,643,000 | 3,474,000 | 3,799,000 | 3,632,000 | 3,514,000 | 3,483,000 | 3,415,000 | 3,245,000 | 3,171,000 | 3,102,000 | 3,189,000 | 3,457,000 | 3,812,000 |
| Total current liabilities | US$ in thousands | 1,617,000 | 1,603,000 | 1,760,000 | 1,666,000 | 1,936,000 | 1,861,000 | 1,902,000 | 1,813,000 | 1,584,000 | 1,708,000 | 1,724,000 | 1,758,000 | 1,687,000 | 1,467,000 | 1,314,000 | 1,945,000 | 1,892,000 | 2,080,000 | 1,622,000 | 1,118,000 |
| Working capital turnover | 2.46 | 2.63 | 3.04 | 3.06 | 3.21 | 3.54 | 3.69 | 3.53 | 3.37 | 2.99 | 3.17 | 3.27 | 3.04 | 2.71 | 2.66 | 4.20 | 4.25 | 4.57 | 2.69 | 1.80 |
January 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,700,000K ÷ ($4,338,000K – $1,617,000K)
= 2.46
Agilent Technologies Inc.'s working capital turnover has shown fluctuations over the past eight quarters. The ratio has ranged from 2.48 to 3.72 during this period. A higher working capital turnover indicates that the company is more efficient in generating sales revenue from its working capital.
The trend in Agilent's working capital turnover has been declining from a peak of 3.72 in Q3 2022 to a low of 2.48 in Q1 2024. This may indicate a decrease in the company's efficiency in managing its working capital to generate sales. It is important for the company to monitor and analyze the reasons behind this decline to take corrective actions if necessary.
Overall, a working capital turnover ratio of around 3 indicates that Agilent is efficiently utilizing its working capital to generate sales revenue. However, the recent decline in the ratio should be closely monitored to ensure optimal working capital management in the future.
Peer comparison
Jan 31, 2024