FormFactor Inc (FORM)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	733,352	744,811	767,046	693,269	586,655
Total current assets	US$ in thousands	573,780	474,552	524,039	487,074	419,043
Total current liabilities	US$ in thousands	131,095	149,667	148,754	154,571	136,560
Working capital turnover		1.66	2.29	2.04	2.09	2.08

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $733,352K ÷ ($573,780K – $131,095K)
= 1.66

FormFactor Inc's working capital turnover ratio has fluctuated over the past five years, ranging from 1.66 in 2023 to 2.29 in 2022. The ratio indicates the company's ability to generate revenue relative to its working capital investment. A higher turnover ratio suggests that the company is effectively using its working capital to generate sales.

In 2022, FormFactor Inc achieved the highest working capital turnover of 2.29, indicating a more efficient utilization of its working capital compared to other years. However, the ratio decreased to 1.66 in 2023, signaling a potential decline in the company's ability to generate revenue from its working capital.

Overall, FormFactor Inc's working capital turnover has shown some variability over the years, with 2022 standing out as a particularly strong performance year in terms of converting working capital into sales revenue. Further analysis of the company's financial strategies and operational efficiency may be required to understand the factors contributing to these fluctuations in the working capital turnover ratio.