Cirrus Logic Inc (CRUS)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	1,788,060	1,896,530	1,781,390	1,369,220	1,280,980
Total current assets	US$ in thousands	1,106,190	1,017,860	840,015	842,519	650,196
Total current liabilities	US$ in thousands	186,393	216,340	264,783	213,610	158,637
Working capital turnover		1.94	2.37	3.10	2.18	2.61

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,788,060K ÷ ($1,106,190K – $186,393K)
= 1.94

The working capital turnover ratio of Cirrus Logic Inc has been fluctuating over the past five years. In 2024, the ratio decreased to 1.94 from 2.37 in 2023, indicating a decrease in efficiency in managing working capital to generate sales. However, compared to 2022 where the ratio was 3.10, the efficiency has declined significantly.

This decrease in working capital turnover might signal potential issues with the company's ability to efficiently utilize its working capital to support its sales activities. It may suggest that there are inefficiencies in managing inventory, accounts receivable, and accounts payable, which could impact the company's liquidity and overall financial health.

Further analysis and investigation into the reasons behind this decrease in working capital turnover are warranted to identify potential areas for improvement and to ensure the company's financial stability and growth prospects in the future.