Bio-Rad Laboratories Inc (BIO)

Working capital turnover

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Revenue (ttm) US$ in thousands 2,637,846 2,686,946 2,731,337 2,741,910 2,774,598 2,777,098 2,856,467 2,894,713 2,922,702 2,979,702 2,876,119 2,701,076 2,540,271 2,374,971 2,288,622 2,311,881 2,292,289 2,284,689 2,267,881 2,271,474
Total current assets US$ in thousands 3,048,330 3,146,770 3,138,870 3,277,250 3,157,980 3,140,160 3,249,700 3,303,420 1,990,480 2,466,290 2,289,090 2,175,320 2,139,840 2,323,860 2,132,580 2,082,590 2,180,160 2,047,630 2,087,940 2,031,640
Total current liabilities US$ in thousands 522,799 558,176 581,982 589,623 568,708 570,677 613,714 648,331 680,938 649,916 587,052 609,892 631,536 986,657 926,895 869,254 905,495 434,040 445,977 444,306
Working capital turnover 1.04 1.04 1.07 1.02 1.07 1.08 1.08 1.09 2.23 1.64 1.69 1.73 1.68 1.78 1.90 1.91 1.80 1.42 1.38 1.43

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,637,846K ÷ ($3,048,330K – $522,799K)
= 1.04

The working capital turnover ratio for Bio-Rad Laboratories Inc. has shown slight fluctuations over the past eight quarters, ranging from 1.03 to 1.09. This metric indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio typically suggests effective management of working capital.

In Q2 and Q3 of 2023, the working capital turnover ratio was slightly higher than in the previous quarters, reaching 1.08 and 1.09, respectively. This uptick may indicate improved efficiency in converting working capital into revenue during those periods.

However, in Q1 and Q4 of 2023, the working capital turnover ratio decreased to 1.03 and 1.06, respectively, compared to the preceding quarters. This decline could signal a potential inefficiency in utilizing working capital to generate sales during those specific periods.

Overall, while Bio-Rad Laboratories Inc. has maintained a fairly consistent working capital turnover ratio over the past year, the slight fluctuations observed can provide insights into the company's management of working capital and revenue generation efficiency.