Cohu Inc (COHU)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 627,391 | 809,990 | 948,697 | 623,954 | 562,949 |
| Total current assets | US$ in thousands | 638,818 | 764,851 | 750,793 | 485,046 | 439,696 |
| Total current liabilities | US$ in thousands | 103,421 | 160,872 | 192,459 | 174,453 | 148,885 |
| Working capital turnover | 1.17 | 1.34 | 1.70 | 2.01 | 1.94 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $627,391K ÷ ($638,818K – $103,421K)
= 1.17
Working capital turnover reflects how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is generating more sales with less investment in working capital.
From the data provided, Cohu Inc's working capital turnover has decreased over the past five years. In 2023, the working capital turnover ratio was 1.17, down from 1.34 in 2022, 1.70 in 2021, 2.01 in 2020, and 1.94 in 2019. This declining trend suggests that Cohu Inc may be becoming less efficient in using its working capital to generate sales.
A decreasing working capital turnover ratio could be due to various reasons, such as inefficient management of inventory, increasing accounts receivable days, or declining sales relative to working capital. It is essential for Cohu Inc to analyze the underlying factors contributing to this trend and take corrective actions to improve its working capital efficiency in the future.
Peer comparison
Dec 31, 2023