Coherent Inc (COHR)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,412,030 | 4,867,480 | 3,194,080 | 3,014,630 | 2,274,090 |
| Total current assets | US$ in thousands | 3,660,100 | 3,252,000 | 4,305,190 | 3,027,390 | 1,788,970 |
| Total current liabilities | US$ in thousands | 1,343,770 | 1,078,750 | 1,266,960 | 729,589 | 672,893 |
| Working capital turnover | 1.90 | 2.24 | 1.05 | 1.31 | 2.04 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,412,030K ÷ ($3,660,100K – $1,343,770K)
= 1.90
The working capital turnover ratio for Coherent Inc has fluctuated over the past five years, indicating varying efficiencies in managing its working capital.
In June 2024, the working capital turnover ratio was 1.90, showing that the company generated $1.90 in revenue for every dollar of working capital invested. This suggests a slight decrease in efficiency compared to the previous year.
In June 2023, the ratio improved to 2.24, reflecting a higher level of efficiency in utilizing working capital to generate revenue.
However, in June 2022, the ratio dropped to 1.05, signaling a decrease in efficiency in working capital management. This could be a concern as the company might be struggling to generate revenue relative to its investment in working capital.
In June 2021, there was a slight improvement with a ratio of 1.31, but it still indicated inefficiency compared to the previous year.
The best performance in the past five years was in June 2020, where the ratio was 2.04, suggesting a high efficiency in converting working capital into revenue.
Overall, Coherent Inc's working capital turnover has exhibited fluctuations, and it would be important for the company to focus on optimizing its working capital management to ensure efficient utilization and generation of revenue in the future.
Peer comparison
Jun 30, 2024