Cohu Inc (COHU)
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 | 401,779 | 444,883 | 500,345 | 564,565 | 636,322 | 690,201 | 746,084 | 794,389 | 812,775 | 813,530 | 831,906 | 859,483 | 887,214 | 897,709 | 823,293 | 722,574 | 636,007 | 575,663 | 568,514 | 574,441 |
| Total current assets | US$ in thousands | 534,307 | 542,454 | 546,125 | 572,917 | 638,818 | 718,567 | 722,291 | 709,496 | 764,851 | 749,331 | 767,296 | 752,156 | 750,793 | 743,507 | 826,597 | 675,718 | 485,517 | 444,818 | 456,250 | 453,799 |
| Total current liabilities | US$ in thousands | 85,184 | 84,975 | 78,563 | 91,095 | 103,421 | 128,444 | 138,402 | 145,028 | 160,872 | 170,757 | 194,268 | 176,469 | 192,459 | 202,152 | 321,312 | 208,033 | 174,924 | 146,903 | 159,041 | 163,717 |
| Working capital turnover | 0.89 | 0.97 | 1.07 | 1.17 | 1.19 | 1.17 | 1.28 | 1.41 | 1.35 | 1.41 | 1.45 | 1.49 | 1.59 | 1.66 | 1.63 | 1.55 | 2.05 | 1.93 | 1.91 | 1.98 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $401,779K ÷ ($534,307K – $85,184K)
= 0.89
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to support its operations.
From the data provided for Cohu Inc, we can see that the working capital turnover has been fluctuating over the quarters. In March 2020, the ratio was 1.98, indicating that for every dollar of working capital, Cohu Inc generated $1.98 in sales. The ratio decreased slightly to 1.91 in June 2020 before picking up to 2.05 by December 2020.
However, from March 2021 onwards, the working capital turnover ratio started to decline consistently, falling to 1.07 by June 2024. This downward trend may suggest inefficiencies in managing working capital or challenges in generating sales relative to the working capital invested.
It is important for Cohu Inc to closely monitor and improve its working capital turnover ratio to ensure optimal utilization of its working capital resources and maximize profitability. Further analysis of the company's operational efficiency and financial performance may provide insights into the factors influencing the working capital turnover trends.
Peer comparison
Dec 31, 2024