FormFactor Inc (FORM)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	763,599	663,102	747,937	769,674	693,616
Total current assets	US$ in thousands	605,128	573,780	474,552	524,039	487,074
Total current liabilities	US$ in thousands	131,345	131,095	149,667	148,754	154,571
Working capital turnover		1.61	1.50	2.30	2.05	2.09

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $763,599K ÷ ($605,128K – $131,345K)
= 1.61

FormFactor Inc's working capital turnover ratio has shown fluctuations over the years based on the provided data.

In December 31, 2020, the working capital turnover ratio was 2.09, indicating that the company generated $2.09 of revenue for every dollar of working capital invested. This suggests efficient utilization of working capital during that period.

By December 31, 2021, the ratio decreased slightly to 2.05, implying a slight decrease in efficiency in generating revenue relative to the working capital invested.

Subsequently, in December 31, 2022, the working capital turnover ratio increased to 2.30, indicating improved efficiency in generating revenue from the working capital. This could be a positive sign of more effective management of working capital during that period.

However, in December 31, 2023, the ratio dropped significantly to 1.50, suggesting a decline in the company's ability to generate revenue from its working capital. This may indicate potential issues with working capital management impacting revenue generation.

By December 31, 2024, the ratio increased slightly to 1.61, but it still remained below the levels observed in the earlier years. This indicates some improvement in revenue generation from working capital compared to the previous year, but the ratio is still lower than the highs seen in 2020 and 2022.

In conclusion, FormFactor Inc's working capital turnover has varied over the years, with some fluctuations indicating changes in efficiency in generating revenue from the working capital. Further analysis of the company's working capital management practices and operational efficiency may be needed to understand the reasons behind these fluctuations.