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.