Digi International Inc (DGII)

Working capital turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	424,046	431,157	438,190	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
Total current assets	US$ in thousands	154,447	164,519	166,384	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
Total current liabilities	US$ in thousands	89,337	82,353	81,134	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
Working capital turnover		6.51	5.25	5.14	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

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $424,046K ÷ ($154,447K – $89,337K)
= 6.51

The working capital turnover ratio for Digi International Inc has shown fluctuations over the past several quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio is generally preferred as it suggests that the company is effectively managing its working capital.

From the data provided, we can see that the working capital turnover ratio has generally been trending upwards from the end of 2019 to the third quarter of 2024. This indicates an improvement in the company's ability to generate sales from its working capital during this period.

There are some quarters where the working capital turnover ratio experienced significant increases, such as in the second quarter of 2022 and the first quarter of 2023. These spikes may suggest more efficient management of working capital during those periods.

However, there are also quarters where the ratio decreased, such as in the first quarter of 2022 and the last quarter of 2023. This could indicate challenges in efficiently utilizing working capital to drive sales during those specific periods.

Overall, the increasing trend in the working capital turnover ratio for Digi International Inc is a positive indicator of the company's operational efficiency and effectiveness in managing its working capital to support its revenue generation activities.