Calix Inc (CALX)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 831,518 | 1,039,590 | 867,827 | 679,394 | 541,239 |
| Total current assets | US$ in thousands | 584,735 | 597,956 | 547,370 | 409,245 | 266,890 |
| Total current liabilities | US$ in thousands | 131,143 | 187,642 | 165,422 | 128,136 | 101,040 |
| Working capital turnover | 1.83 | 2.53 | 2.27 | 2.42 | 3.26 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $831,518K ÷ ($584,735K – $131,143K)
= 1.83
The working capital turnover for Calix Inc has exhibited a decreasing trend over the past five years. In December 31, 2020, the working capital turnover stood at 3.26, indicating that the company generated $3.26 in revenue for every dollar of working capital invested. However, by December 31, 2024, this ratio had declined to 1.83, suggesting a reduced efficiency in utilizing its working capital to generate sales.
A working capital turnover ratio below 1 indicates inefficiency in managing working capital, while a higher ratio implies better utilization of working capital to generate revenue. Calix Inc's declining trend in working capital turnover raises concerns about its ability to efficiently leverage its current assets and liabilities to drive sales growth. It is essential for the company to monitor and improve its working capital management practices to enhance operational efficiency and financial performance in the future.
Peer comparison
Dec 31, 2024