Cirrus Logic Inc (CRUS)

Working capital turnover

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Revenue US$ in thousands 1,896,080 1,788,890 1,897,620 1,781,460 1,369,230
Total current assets US$ in thousands 1,239,730 1,106,190 1,017,860 840,015 842,519
Total current liabilities US$ in thousands 195,188 186,393 216,340 264,783 213,610
Working capital turnover 1.82 1.94 2.37 3.10 2.18

March 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,896,080K ÷ ($1,239,730K – $195,188K)
= 1.82

The working capital turnover ratio for Cirrus Logic Inc has displayed fluctuations over the past five years. In March 2021, the ratio stood at 2.18, indicating that the company generated $2.18 in revenue for every dollar of working capital invested. This ratio improved to 3.10 by March 2022, suggesting better efficiency in utilizing working capital to generate sales.

However, in the following years, the working capital turnover ratio slightly declined. By March 2023, the ratio was 2.37, indicating a slight decrease in efficiency compared to the previous year. This trend continued in March 2024, with the ratio falling to 1.94, signaling a decrease in revenue generated per unit of working capital.

The most recent data available for March 31, 2025, shows a working capital turnover ratio of 1.82, further declining from the previous year. This decreasing trend may indicate a lower level of efficiency in converting working capital into sales revenue for the company, warranting a closer examination of their working capital management practices.