Digi International Inc (DGII)

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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	441,632	444,849	438,424	429,705	413,274	388,225	361,593	337,155	319,743	308,632	302,695	293,954	290,100	279,271	271,062	261,890	254,207	254,203	254,361	255,467
Total current assets	US$ in thousands	165,378	166,198	167,354	169,066	170,241	166,208	169,557	167,840	156,702	246,658	246,314	234,431	167,262	170,058	166,462	188,367	185,035	192,547	177,922	175,167
Total current liabilities	US$ in thousands	70,445	85,978	89,019	83,769	90,565	96,507	94,578	89,977	79,311	58,941	57,415	56,861	67,487	61,230	50,345	53,206	61,525	44,458	35,021	41,091
Working capital turnover		4.65	5.55	5.60	5.04	5.19	5.57	4.82	4.33	4.13	1.64	1.60	1.66	2.91	2.57	2.33	1.94	2.06	1.72	1.78	1.91

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $441,632K ÷ ($165,378K – $70,445K)
= 4.65

Digi International, Inc.'s working capital turnover has shown variability over the past eight quarters. The working capital turnover ratio measures a company's ability to efficiently utilize its working capital to generate sales. A higher ratio indicates better efficiency in managing working capital.

In Q3 2023, Digi International had the highest working capital turnover of 5.60, which suggests that the company efficiently converted its working capital into sales during that period. This was followed by Q4 2023 and Q4 2022, with ratios of 5.55 and 5.57, respectively, indicating a consistently strong performance in managing working capital.

However, in Q2 2022, the company's working capital turnover ratio dropped to 4.33, the lowest within the given period. This may signal a potential inefficiency in managing working capital during that quarter.

Overall, Digi International has shown a generally positive trend in working capital turnover, with some fluctuations. It is essential for the company to continue monitoring and optimizing its working capital management to ensure continued efficiency in converting working capital into sales.