Entegris Inc (ENTG)

Working capital turnover

		Dec 31, 2024	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
Revenue (ttm)	US$ in thousands	3,241,208	3,203,662	3,284,207	3,372,555	3,523,926	3,657,705	3,763,294	3,554,783	3,282,033	2,971,167	2,556,832	2,435,695	2,298,893	2,181,283	2,082,777	1,959,830	1,859,313	1,768,717	1,681,877	1,612,346
Total current assets	US$ in thousands	1,616,300	1,715,090	1,576,790	1,575,450	1,977,330	2,943,560	2,968,550	2,457,050	2,335,180	2,222,280	3,876,160	1,369,340	1,313,370	1,275,700	1,159,240	1,244,610	1,234,260	1,146,450	1,188,850	966,306
Total current liabilities	US$ in thousands	525,178	586,691	439,858	469,982	513,995	683,159	646,289	781,623	761,931	841,021	393,135	371,661	379,001	309,413	260,530	266,271	302,626	247,373	237,955	201,990
Working capital turnover		2.97	2.84	2.89	3.05	2.41	1.62	1.62	2.12	2.09	2.15	0.73	2.44	2.46	2.26	2.32	2.00	2.00	1.97	1.77	2.11

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,241,208K ÷ ($1,616,300K – $525,178K)
= 2.97

Entegris Inc's working capital turnover has shown fluctuations over the reported periods from March 31, 2020, to December 31, 2024. A higher working capital turnover ratio indicates a more efficient utilization of working capital to generate sales revenue.

The trend of the working capital turnover ratio for Entegris Inc generally increased from March 31, 2020, to June 30, 2021, indicating improving efficiency in managing working capital to support revenue generation. However, from June 2022 to June 2023, there was a significant decline in the ratio, suggesting a potential decrease in efficiency in converting working capital to sales.

The ratio recovered in the following periods up to December 31, 2024, showing a variable trend. It peaked at 3.05 on March 31, 2024, indicating a high turnover of working capital in generating sales revenue.

Overall, an analysis of Entegris Inc's working capital turnover highlights the company's ability to efficiently manage its working capital to support its sales operations. It is important for the company to closely monitor this ratio and implement strategies to maintain or improve the efficiency of working capital utilization over time.