Avnet Inc (AVT)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,200,800 | 23,757,100 | 26,536,900 | 24,310,700 | 19,534,700 |
| Total current assets | US$ in thousands | 10,018,700 | 10,370,600 | 10,750,900 | 8,876,630 | 7,163,420 |
| Total current liabilities | US$ in thousands | 4,128,100 | 4,465,270 | 4,249,380 | 4,251,650 | 3,055,240 |
| Working capital turnover | 3.77 | 4.02 | 4.08 | 5.26 | 4.76 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $22,200,800K ÷ ($10,018,700K – $4,128,100K)
= 3.77
The working capital turnover ratio for Avnet Inc over the specified periods indicates a variable trend from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 4.76, reflecting the efficiency with which the company utilized its working capital to generate sales. This ratio increased to 5.26 by June 30, 2022, suggesting an improvement in asset utilization, potentially indicating more efficient working capital management or increased sales relative to working capital at that time.
However, after this peak, the ratio experienced a declining trend: it decreased to 4.08 on June 30, 2023, then marginally dropped further to 4.02 by June 30, 2024, and continued declining to 3.77 on June 30, 2025. This downward trajectory implies a decreasing efficiency in managing working capital relative to sales generation. Possible interpretations could include increased working capital levels, challenges in generating sales proportional to working capital investments, or a strategic shift in operations or sales processes.
Overall, the trend suggests a peak in working capital efficiency around mid-2022 followed by a consistent decline, pointing to potential areas where operational or financial strategies might be influencing the company's working capital management and its capacity to translate working capital into sales.
Peer comparison
Jun 30, 2025