Cognex Corporation (CGNX)

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	824,931	871,996	891,741	923,419	1,004,258	1,006,206	1,082,805	1,078,739	1,034,795	1,014,415	983,583	884,497	810,787	756,941	685,541	715,295	724,470	747,987	1,030,020	1,042,097
Total current assets	US$ in thousands	678,997	846,991	718,382	722,163	717,699	787,467	734,758	672,880	639,798	672,067	692,878	625,571	601,691	628,136	646,475	595,287	607,231	625,781	678,874	773,245
Total current liabilities	US$ in thousands	151,884	169,704	180,462	213,977	187,708	161,278	192,241	195,126	188,589	165,137	204,934	159,680	132,297	139,398	144,581	150,644	120,477	81,215	85,683	93,045
Working capital turnover		1.56	1.29	1.66	1.82	1.89	1.61	2.00	2.26	2.29	2.00	2.02	1.90	1.73	1.55	1.37	1.61	1.49	1.37	1.74	1.53

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $824,931K ÷ ($678,997K – $151,884K)
= 1.56

Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover indicates better efficiency in utilizing working capital to generate sales.

Looking at the trend of Cognex Corp.'s working capital turnover over the past eight quarters, we can observe some fluctuations in the ratio. In Q1 2022, the company had the highest working capital turnover of 2.26, which indicates that Cognex was able to generate $2.26 in sales revenue for every dollar of working capital invested.

Subsequently, there was a gradual decline in working capital turnover over the next few quarters, with the ratio reaching a low of 1.30 in Q3 2023. This decline could suggest that Cognex experienced challenges in efficiently utilizing its working capital to generate sales during this period.

However, it is worth noting that the working capital turnover ratio improved in Q4 2023 to 1.59, indicating a rebound in efficiency in utilizing working capital compared to the previous quarter. Overall, while there have been fluctuations in Cognex Corp.'s working capital turnover ratio, the company has generally maintained a reasonable level of efficiency in using working capital to generate sales revenue.