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
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.