Benchmark Electronics Inc (BHE)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | 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 | ||
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Revenue (ttm) | US$ in thousands | 2,656,105 | 2,690,572 | 2,752,520 | 2,819,856 | 2,838,976 | 2,898,266 | 2,950,146 | 2,944,943 | 2,886,331 | 2,768,741 | 2,569,048 | 2,385,681 | 2,255,319 | 2,143,515 | 2,097,584 | 2,043,888 | 2,053,131 | 2,040,325 | 2,069,603 | 2,180,239 |
Total current assets | US$ in thousands | 1,504,230 | 1,508,710 | 1,510,650 | 1,578,610 | 1,635,750 | 1,707,070 | 1,721,060 | 1,690,870 | 1,652,150 | 1,708,200 | 1,601,270 | 1,451,020 | 1,348,140 | 1,279,010 | 1,266,980 | 1,213,440 | 1,202,350 | 1,185,230 | 1,208,120 | 1,265,000 |
Total current liabilities | US$ in thousands | 649,099 | 639,131 | 643,060 | 667,819 | 713,547 | 699,104 | 721,921 | 711,863 | 749,136 | 848,900 | 785,078 | 684,465 | 654,382 | 600,169 | 581,409 | 505,110 | 481,136 | 449,485 | 464,620 | 459,339 |
Working capital turnover | 3.11 | 3.09 | 3.17 | 3.10 | 3.08 | 2.88 | 2.95 | 3.01 | 3.20 | 3.22 | 3.15 | 3.11 | 3.25 | 3.16 | 3.06 | 2.89 | 2.85 | 2.77 | 2.78 | 2.71 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,656,105K ÷ ($1,504,230K – $649,099K)
= 3.11
Based on the provided data, Benchmark Electronics Inc's working capital turnover has been showing an increasing trend over the years, indicating improved efficiency in managing its working capital. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales.
From March 31, 2020, to December 31, 2024, the working capital turnover ratio has steadily increased from 2.71 to 3.11. This suggests that Benchmark Electronics Inc is generating more sales per dollar of working capital invested, which is a positive sign of operational efficiency.
The peak in the working capital turnover ratio occurred on December 31, 2021, with a value of 3.25, indicating the highest level of efficiency in utilizing working capital during that period.
However, there was a slight dip in the ratio in the following periods, with a low of 2.88 on September 30, 2023. This could indicate a temporary strain on working capital management during that specific period.
Overall, the increasing trend in the working capital turnover ratio for Benchmark Electronics Inc is a positive indicator of the company's ability to efficiently manage its working capital and convert it into sales. It suggests effective utilization of resources to drive revenue generation, which can enhance overall financial performance and profitability.
Peer comparison
Dec 31, 2024