Azenta Inc (AZTA)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 667,215 | 2,683,250 | 501,137 | 887,939 | 1,154,590 |
| Total current assets | US$ in thousands | 1,418,960 | 2,459,350 | 777,366 | 649,453 | 647,145 |
| Total current liabilities | US$ in thousands | 210,928 | 230,546 | 345,088 | 211,118 | 272,270 |
| Working capital turnover | 0.55 | 1.20 | 1.16 | 2.03 | 3.08 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $667,215K ÷ ($1,418,960K – $210,928K)
= 0.55
The working capital turnover ratio measures a company's efficiency in utilizing its working capital to generate sales. A higher ratio indicates effective management of working capital, while a lower ratio suggests inefficiency.
Azenta Inc's working capital turnover has fluctuated over the past five years, ranging from a high of 2.08 in 2019 to a low of 0.25 in 2022. The ratio of 0.55 in 2023 indicates a moderate utilization of working capital to generate sales.
A decrease in the working capital turnover ratio may be attributed to an increase in the level of working capital relative to sales, indicating a potential liquidity management issue. Conversely, an increase in the ratio signifies a more efficient use of working capital to drive sales.
Further analysis of the company's operational and financial activities is essential to gain insights into the reasons behind the fluctuations in the working capital turnover ratio, enabling a more comprehensive assessment of Azenta Inc's financial performance and liquidity management.
Peer comparison
Sep 30, 2023