Avnet Inc (AVT)
Working capital turnover
| Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 23,757,130 | 24,748,760 | 25,609,790 | 26,122,400 | 26,536,880 | 26,354,920 | 26,328,440 | 25,476,140 | 24,310,710 | 23,164,790 | 21,593,360 | 20,396,310 | 19,534,670 | 18,467,640 | 17,860,750 | 17,727,390 | 17,634,340 | 18,155,550 | 18,544,550 | 19,058,720 |
| Total current assets | US$ in thousands | 10,370,600 | 10,485,800 | 11,139,000 | 10,911,100 | 10,750,900 | 10,443,500 | 10,303,600 | 9,509,900 | 8,876,630 | 8,217,640 | 7,944,210 | 7,465,070 | 7,163,420 | 6,604,600 | 6,454,450 | 6,602,190 | 6,328,810 | 6,316,620 | 6,536,500 | 6,988,950 |
| Total current liabilities | US$ in thousands | 4,465,270 | 4,492,670 | 4,765,560 | 4,290,380 | 4,249,380 | 3,969,750 | 4,057,660 | 4,659,190 | 4,251,650 | 4,065,790 | 3,688,500 | 3,113,340 | 3,055,240 | 2,885,940 | 2,826,320 | 2,766,410 | 2,280,370 | 2,607,790 | 2,745,250 | 3,137,300 |
| Working capital turnover | 4.02 | 4.13 | 4.02 | 3.95 | 4.08 | 4.07 | 4.22 | 5.25 | 5.26 | 5.58 | 5.07 | 4.69 | 4.76 | 4.97 | 4.92 | 4.62 | 4.36 | 4.90 | 4.89 | 4.95 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $23,757,130K ÷ ($10,370,600K – $4,465,270K)
= 4.02
The working capital turnover ratio for Avnet Inc has shown variability over the past quarters, ranging from 3.95 to 5.58. The ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is efficiently managing its working capital to drive sales.
Looking at the trend, the ratio had a peak at 5.58 in the second quarter of 2022, indicating effective management of working capital to generate revenue. However, the ratio has since fluctuated between 4.02 and 5.26, suggesting some inconsistency in working capital management efficiency.
Overall, Avnet Inc's working capital turnover ratio analysis reveals that the company has generally been efficient in utilizing its working capital to generate sales, although there have been fluctuations in this efficiency over the analyzed period. Further investigation into the factors contributing to these fluctuations could provide insights into areas where the company may need to focus on improving its working capital management.
Peer comparison
Jun 30, 2024