Benchmark Electronics Inc (BHE)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 2,656,100 2,838,980 2,886,330 2,255,320 2,053,130
Total current assets US$ in thousands 1,504,230 1,635,750 1,652,150 1,348,140 1,202,350
Total current liabilities US$ in thousands 649,099 713,547 749,136 654,382 481,136
Working capital turnover 3.11 3.08 3.20 3.25 2.85

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,656,100K ÷ ($1,504,230K – $649,099K)
= 3.11

Based on the provided data, Benchmark Electronics Inc's working capital turnover has shown a positive trend over the five-year period from 2020 to 2024. The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales revenue.

Benchmark Electronics Inc's working capital turnover ratio increased from 2.85 in 2020 to 3.11 in 2024. This indicates that the company's efficiency in managing its working capital to support its sales activities has improved over the years. A higher turnover ratio is generally favorable as it suggests that the company is able to generate more sales revenue per dollar of working capital invested.

However, it is essential to consider the industry benchmarks and compare Benchmark Electronics Inc's working capital turnover ratio with its competitors to gain a better understanding of its performance in this area. Overall, the increasing trend in the working capital turnover ratio of Benchmark Electronics Inc reflects positively on the company's operational efficiency and financial management.