Cohu Inc (COHU)
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 | 629,363 | 683,338 | 741,439 | 791,525 | 809,990 | 809,089 | 824,680 | 925,739 | 948,812 | 964,541 | 892,945 | 714,217 | 627,430 | 567,086 | 556,311 | 560,509 | 568,943 | 597,569 | 543,374 | 501,974 |
| Total current assets | US$ in thousands | 638,818 | 718,567 | 722,291 | 709,496 | 764,851 | 749,331 | 767,296 | 752,156 | 750,793 | 743,507 | 826,597 | 675,718 | 485,046 | 444,818 | 456,250 | 453,799 | 439,696 | 431,595 | 442,807 | 444,846 |
| Total current liabilities | US$ in thousands | 103,421 | 128,444 | 138,402 | 145,028 | 160,872 | 170,757 | 194,268 | 176,469 | 192,459 | 202,152 | 321,312 | 208,033 | 174,453 | 146,903 | 159,041 | 163,717 | 148,885 | 139,349 | 146,931 | 138,089 |
| Working capital turnover | 1.18 | 1.16 | 1.27 | 1.40 | 1.34 | 1.40 | 1.44 | 1.61 | 1.70 | 1.78 | 1.77 | 1.53 | 2.02 | 1.90 | 1.87 | 1.93 | 1.96 | 2.04 | 1.84 | 1.64 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $629,363K ÷ ($638,818K – $103,421K)
= 1.18
The working capital turnover ratio for Cohu Inc has fluctuated over the past several years, indicating changes in the efficiency of the company in utilizing its working capital to generate revenue.
The ratio has ranged from 1.16 to 2.04, with higher values typically indicating better efficiency in utilizing working capital to generate sales. A higher turnover ratio suggests that the company is effectively managing its working capital by efficiently using its current assets to produce revenue.
It is important for Cohu Inc to monitor its working capital turnover consistently, as a declining ratio could indicate inefficiencies in managing working capital, such as excess inventory levels or slow collection of accounts receivable. In contrast, an increasing ratio could signal improved operational efficiency and effectiveness in utilizing working capital.
Overall, the trend of the working capital turnover ratio for Cohu Inc shows some variability over time, highlighting the importance of analyzing this metric in conjunction with other financial ratios and operational data to gain a comprehensive understanding of the company's financial performance and efficiency in managing its working capital.
Peer comparison
Dec 31, 2023