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.