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.