Advanced Energy Industries Inc (AEIS)
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 | 1,639,083 | 1,729,945 | 1,837,914 | 1,864,718 | 1,838,443 | 1,745,464 | 1,576,116 | 1,496,837 | 1,451,137 | 1,425,066 | 1,468,727 | 1,447,130 | 1,409,954 | 1,378,932 | 1,164,898 | 961,575 | 789,424 | 605,317 | 603,631 | 664,251 |
| Total current assets | US$ in thousands | 1,711,890 | 1,673,470 | 1,153,200 | 1,210,310 | 1,188,510 | 1,181,780 | 1,087,520 | 1,174,480 | 1,162,230 | 1,164,360 | 1,103,990 | 1,040,080 | 980,249 | 978,476 | 929,682 | 861,225 | 866,738 | 879,964 | 563,022 | 573,266 |
| Total current liabilities | US$ in thousands | 335,848 | 314,812 | 303,430 | 384,260 | 393,043 | 432,955 | 389,021 | 363,395 | 370,196 | 387,288 | 377,396 | 326,873 | 296,397 | 336,520 | 342,870 | 303,774 | 320,332 | 355,897 | 96,497 | 112,050 |
| Working capital turnover | 1.19 | 1.27 | 2.16 | 2.26 | 2.31 | 2.33 | 2.26 | 1.85 | 1.83 | 1.83 | 2.02 | 2.03 | 2.06 | 2.15 | 1.99 | 1.72 | 1.44 | 1.16 | 1.29 | 1.44 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,639,083K ÷ ($1,711,890K – $335,848K)
= 1.19
Over the past eight quarters, Advanced Energy Industries Inc. has experienced fluctuations in its working capital turnover ratio. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.
In Q3 and Q4 of 2023, the working capital turnover ratios were 1.28 and 1.20 respectively, indicating a slight decrease in efficiency compared to the previous quarters. However, the ratios were still above 1, suggesting that Advanced Energy Industries Inc. is effectively utilizing its working capital to generate sales.
The highest working capital turnover ratios were seen in Q4 2022 and Q1 2023 at 2.32 and 2.27 respectively, indicating that the company was very efficient in managing its working capital during those periods. On the other hand, the lowest ratio was observed in Q3 2022 at 1.85, which may suggest a temporary decrease in efficiency.
Overall, the trend in the working capital turnover ratio for Advanced Energy Industries Inc. shows variability but generally indicates that the company is effectively managing its working capital to generate sales revenue efficiently. It is important for the company to monitor this ratio closely to ensure working capital is being optimally utilized to support its operations and growth.
Peer comparison
Dec 31, 2023