Cytek Biosciences Inc (CTKB)

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
Revenue (ttm)	US$ in thousands	193,014	183,117	175,594	166,060	164,036	155,086	148,985	139,234
Total current assets	US$ in thousands	392,060	422,315	424,821	425,622	454,020	443,859	443,270	439,112	431,733	439,826	216,938
Total current liabilities	US$ in thousands	56,226	58,693	53,591	56,517	49,040	41,494	42,350	42,803	33,181	30,014	28,165
Working capital turnover		0.57	0.50	0.47	0.45	0.41	0.39	0.37	0.35

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $193,014K ÷ ($392,060K – $56,226K)
= 0.57

Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively using its working capital to support sales.

Looking at the data provided for Cytek Biosciences Inc, we can see a gradual improvement in the working capital turnover ratio over the last few quarters. The ratio has increased from 0.35 in Q1 2021 to 0.57 in Q4 2023. This suggests that the company has been able to generate more sales revenue relative to its working capital in recent quarters.

The upward trend in the working capital turnover ratio may indicate that Cytek Biosciences Inc is managing its working capital more efficiently, possibly through effective inventory management, accounts receivable collection, and accounts payable management. This improved efficiency can result in a better cash flow position and stronger liquidity for the company.

Overall, the increasing trend in Cytek Biosciences Inc's working capital turnover ratio indicates positive developments in the company's working capital management and operational efficiency. It suggests that the company is using its resources more effectively to generate sales revenue, which can be a favorable sign for investors and stakeholders.