Azenta Inc (AZTA)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 650,019 | 667,215 | 2,683,250 | 501,137 | 887,939 |
| Total current assets | US$ in thousands | 832,807 | 1,418,960 | 2,459,350 | 777,366 | 649,453 |
| Total current liabilities | US$ in thousands | 204,839 | 210,928 | 230,546 | 345,088 | 211,118 |
| Working capital turnover | 1.04 | 0.55 | 1.20 | 1.16 | 2.03 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $650,019K ÷ ($832,807K – $204,839K)
= 1.04
Azenta Inc's working capital turnover has fluctuated over the past five years. The ratio indicates the efficiency of the company in generating sales from its working capital. A higher ratio suggests that Azenta is effectively utilizing its working capital to generate revenue.
In 2020, the working capital turnover was at its highest at 2.03, signifying that the company generated $2.03 in revenue for every dollar of working capital invested. This indicates robust efficiency in utilizing its current assets to drive sales.
However, in 2023, the working capital turnover dropped to 0.55, showing a significant decline in efficiency in generating sales from working capital. This could indicate either a decrease in sales relative to working capital or inefficient management of current assets.
In 2024, the working capital turnover improved to 1.04, indicating a better utilization of working capital compared to the previous year. It is essential for Azenta Inc to consistently monitor and improve its working capital turnover to ensure optimal utilization of current assets in driving revenue generation.
Peer comparison
Sep 30, 2024