Cirrus Logic Inc (CRUS)

Working capital turnover

		Mar 31, 2024	Dec 31, 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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	1,788,131	1,789,079	1,760,694	1,820,205	1,896,542	2,014,981	1,972,748	1,898,050	1,781,915	1,584,295	1,521,700	1,403,112	1,368,432	1,354,186	1,243,059	1,284,646	1,280,324	1,241,474	1,191,101	1,168,494
Total current assets	US$ in thousands	1,106,190	1,185,380	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	689,967	650,196	714,601	652,020	564,075
Total current liabilities	US$ in thousands	186,393	178,594	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	163,044	158,637	178,311	192,796	131,206
Working capital turnover		1.94	1.78	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	2.44	2.60	2.31	2.59	2.70

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,788,131K ÷ ($1,106,190K – $186,393K)
= 1.94

The working capital turnover ratio for Cirrus Logic Inc has shown fluctuations over the past several quarters. The ratio measures how efficiently the company is able to utilize its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is efficiently managing its working capital to support its sales activities.

From the data provided, we observe that the working capital turnover ratio has generally been on an upward trend from December 2019 to September 2022, reaching its peak at 3.12 in June 2022. This suggests that during this period, Cirrus Logic was effectively utilizing its working capital to generate sales.

However, the ratio started to decline from September 2022 onwards, and as of March 2024, it stands at 1.94. This decline may indicate a potential inefficiency in utilizing working capital to support sales activities.

It is important for the company to monitor and analyze the factors contributing to these fluctuations in the working capital turnover ratio in order to make informed decisions regarding its working capital management and operational efficiency.