PC Connection Inc (CNXN)
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 | 2,850,161 | 2,886,154 | 2,968,760 | 3,063,722 | 3,124,985 | 3,192,747 | 3,168,423 | 3,044,075 | 2,892,633 | 2,768,107 | 2,669,491 | 2,515,332 | 2,590,290 | 2,631,231 | 2,707,889 | 2,898,963 | 2,820,232 | 2,813,125 | 2,742,333 | 2,707,827 |
| Total current assets | US$ in thousands | 1,048,640 | 1,040,700 | 1,021,930 | 974,116 | 953,792 | 986,257 | 975,375 | 950,740 | 932,413 | 862,279 | 877,988 | 802,851 | 858,980 | 843,716 | 791,741 | 748,983 | 776,411 | 710,355 | 753,665 | 672,344 |
| Total current liabilities | US$ in thousands | 327,965 | 339,963 | 347,305 | 318,309 | 310,517 | 352,920 | 366,883 | 369,803 | 374,632 | 293,348 | 330,494 | 274,944 | 342,260 | 338,360 | 308,207 | 277,309 | 308,923 | 257,470 | 321,235 | 258,881 |
| Working capital turnover | 3.95 | 4.12 | 4.40 | 4.67 | 4.86 | 5.04 | 5.21 | 5.24 | 5.19 | 4.87 | 4.88 | 4.76 | 5.01 | 5.21 | 5.60 | 6.15 | 6.03 | 6.21 | 6.34 | 6.55 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,850,161K ÷ ($1,048,640K – $327,965K)
= 3.95
Working capital turnover measures the efficiency of a company in generating revenue relative to its working capital. A higher ratio indicates that the company is generating more revenue per dollar of working capital. PC Connection, Inc.'s working capital turnover has been declining over the past quarters, from 5.24 in Q1 2022 to 3.96 in Q4 2023. This downward trend suggests that the company is becoming less efficient in utilizing its working capital to generate sales.
However, despite the decline, PC Connection, Inc. still maintains a relatively healthy working capital turnover ratio above 3. This indicates that the company is able to efficiently utilize its working capital to support its business operations and generate revenue. Further analysis of the company's working capital management and revenue generation strategies may be warranted to understand the factors driving the trend in working capital turnover.
Peer comparison
Dec 31, 2023