FormFactor Inc (FORM)

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	763,599	742,279	705,937	664,379	663,102	660,926	670,220	718,211	747,937	786,948	796,043	780,212	769,674	761,719	749,751	719,499	693,616	675,202	637,810	618,004
Total current assets	US$ in thousands	605,128	614,782	620,618	588,496	573,780	506,585	478,255	480,921	474,552	516,314	537,064	556,148	524,039	506,501	497,491	498,105	487,074	456,194	455,414	426,255
Total current liabilities	US$ in thousands	131,345	129,176	139,041	130,558	131,095	129,526	124,103	128,170	149,667	163,756	159,585	154,657	148,754	160,000	153,851	146,649	154,571	136,274	123,236	117,494
Working capital turnover		1.61	1.53	1.47	1.45	1.50	1.75	1.89	2.04	2.30	2.23	2.11	1.94	2.05	2.20	2.18	2.05	2.09	2.11	1.92	2.00

December 31, 2024 calculation

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

FormFactor Inc's working capital turnover, which measures how efficiently the company utilizes its working capital to generate revenue, has shown some fluctuations over the years.

From March 31, 2020, to June 30, 2021, the working capital turnover consistently increased from 2.00 to a peak of 2.18, indicating that the company was effectively using its working capital to support its sales activities. This upward trend suggests improved efficiency in managing its current assets and liabilities during this period.

However, starting from March 31, 2022, the working capital turnover began to decline gradually. By December 31, 2024, the ratio hit a low at 1.61, reflecting a decrease in the company's ability to generate sales revenue from its working capital. This downward trend could be a sign of potential inefficiencies in working capital management, which may require further investigation.

Overall, FormFactor Inc's working capital turnover has shown a mix of positive and negative trends, highlighting the importance of closely monitoring the company's liquidity and operational efficiency to ensure sustainable growth and profitability.