Benchmark Electronics Inc (BHE)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,838,980	2,886,330	2,255,320	2,053,130	2,268,100
Total current assets	US$ in thousands	1,635,750	1,652,150	1,348,140	1,202,350	1,195,080
Total current liabilities	US$ in thousands	713,547	749,136	654,382	481,136	459,245
Working capital turnover		3.08	3.20	3.25	2.85	3.08

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,838,980K ÷ ($1,635,750K – $713,547K)
= 3.08

The working capital turnover for Benchmark Electronics Inc. has shown some fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

The trend of the working capital turnover ratio over the period suggests that the company has been able to effectively manage its working capital to support its sales operations. A higher turnover ratio generally indicates that the company is efficiently converting its working capital into sales.

In 2023, the working capital turnover ratio decreased slightly to 3.08 from 3.20 in 2022. This might suggest a slight decrease in the efficiency of the company's working capital utilization to generate sales compared to the previous year.

Overall, Benchmark Electronics Inc. has maintained a relatively stable working capital turnover ratio over the years, indicating that the company has been able to effectively manage its working capital to support its sales activities. However, it is crucial for the company to continuously monitor and improve this ratio to ensure optimal utilization of its working capital resources.