Cirrus Logic Inc (CRUS)

Working capital turnover

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Sep 23, 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
Revenue (ttm) US$ in thousands 1,896,077 1,843,448 1,906,694 1,845,900 1,952,694 1,897,883 1,651,721 1,761,240 1,820,994 1,897,617 2,014,767 1,972,534 1,897,846 1,781,460 1,585,025 1,522,471 1,403,910 1,369,230 1,354,984 1,243,857
Total current assets US$ in thousands 1,239,730 1,250,450 1,224,900 1,101,740 1,106,190 1,185,380 1,096,870 1,096,870 1,048,670 1,017,860 1,013,480 956,567 861,008 840,015 763,521 949,056 839,344 842,519 803,544 709,231
Total current liabilities US$ in thousands 195,188 210,913 229,276 201,742 186,393 178,594 201,190 201,190 202,854 216,340 228,549 282,365 252,596 264,783 239,514 500,381 186,501 213,610 184,855 178,043
Working capital turnover 1.82 1.77 1.92 2.05 2.12 1.89 1.84 1.97 2.15 2.37 2.57 2.93 3.12 3.10 3.02 3.39 2.15 2.18 2.19 2.34

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,896,077K ÷ ($1,239,730K – $195,188K)
= 1.82

The working capital turnover of Cirrus Logic Inc has shown a fluctuating trend over the given period of time. The ratio measures how effectively the company is utilizing its working capital to generate sales.

From the data provided, we observe that the working capital turnover ratio was relatively stable in the range of 2.1 to 2.3 from September 2020 to June 2022. After June 2022, there was an increase in the ratio, reaching its peak at 3.12 in June 2022. This indicates that the company was generating more revenues per unit of working capital during this period.

However, starting from September 2022, the working capital turnover ratio began to decline gradually. As of March 2025, the ratio stands at 1.82, indicating a decrease in efficiency in utilizing working capital to generate sales.

The decreasing trend in the working capital turnover ratio may suggest that Cirrus Logic Inc could be facing challenges in managing its working capital efficiently to support its revenue generation activities. Further analysis and investigation into the company's working capital management practices and its impact on revenue generation could provide more insights into the financial health and operational efficiency of the company.