Cognex Corporation (CGNX)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	915,950	825,325	1,004,230	1,034,800	812,977
Total current assets	US$ in thousands	613,367	678,997	717,699	639,798	601,691
Total current liabilities	US$ in thousands	169,380	151,884	187,708	188,589	132,297
Working capital turnover		2.06	1.57	1.89	2.29	1.73

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $915,950K ÷ ($613,367K – $169,380K)
= 2.06

The working capital turnover ratio for Cognex Corporation has shown some fluctuations over the past five years.

- In 2020, the ratio was 1.73, indicating that the company generated $1.73 in net sales for every $1 of working capital invested.
- The ratio improved in 2021 to 2.29, suggesting that Cognex efficiently utilized its working capital to generate sales revenue.
- By 2022, the ratio decreased slightly to 1.89, indicating a decrease in the efficiency of working capital utilization compared to the previous year.
- In 2023, there was a further decline in the ratio to 1.57, reflecting a potential challenge in managing working capital effectively.
- However, in 2024, the ratio improved again to 2.06, showcasing a rebound in the efficiency of working capital turnover for Cognex.

Overall, the trend in working capital turnover for Cognex Corporation shows some variability, with fluctuations in efficiency from year to year. It is essential for the company to monitor and manage its working capital effectively to support sustainable growth and profitability.