Cognex Corporation (CGNX)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	915,950	880,891	832,846	834,652	825,325	872,390	892,135	923,813	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
Total current assets	US$ in thousands	613,367	672,082	681,017	661,530	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
Total current liabilities	US$ in thousands	169,380	170,736	168,783	188,102	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
Working capital turnover		2.06	1.76	1.63	1.76	1.57	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

December 31, 2024 calculation

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

The working capital turnover ratio measures the efficiency of Cognex Corporation in utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its sales activities.

Analyzing the data provided, we observe fluctuations in Cognex Corporation's working capital turnover over the periods. The trend indicates an improvement in efficiency as the ratio generally increases from March 31, 2020, to December 31, 2024. This suggests that the company is becoming more efficient in utilizing its working capital to generate revenues.

It is worth noting that there are fluctuations in the ratio over the periods, with some quarters showing a decrease followed by an increase in subsequent periods. This could be attributed to various factors such as changes in sales volume, inventory management, and cash flow dynamics within the business.

Overall, the increasing trend in the working capital turnover ratio for Cognex Corporation reflects improved efficiency in utilizing its working capital to drive sales, which is a positive indicator of the company's operational performance.