Cognex Corporation (CGNX)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 825,325 1,004,230 1,034,800 812,977 725,116
Total current assets US$ in thousands 678,997 717,699 639,798 601,691 607,231
Total current liabilities US$ in thousands 151,884 187,708 188,589 132,297 120,477
Working capital turnover 1.57 1.89 2.29 1.73 1.49

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $825,325K ÷ ($678,997K – $151,884K)
= 1.57

The working capital turnover ratio for Cognex Corp. has shown a fluctuating trend over the past five years. The ratio decreased from 1.49 in 2019 to 1.73 in 2020, indicating a temporary inefficiency in utilizing working capital to generate revenue during that period. However, the ratio improved in 2021 to 2.30, suggesting a more efficient use of working capital in generating sales.

In 2022, the working capital turnover ratio declined to 1.90, which may imply a slight decrease in the efficiency of working capital management compared to the previous year. This was followed by another decrease to 1.59 in 2023, indicating potentially lower sales generated per unit of working capital.

Overall, while the working capital turnover ratio has shown fluctuations, it is essential to consider other factors and analyze the company's operational efficiency and liquidity management in conjunction with this ratio to gain a holistic understanding of Cognex Corp.'s financial performance.


Peer comparison

Dec 31, 2023