Harmonic Inc (HLIT)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 678,722 | 607,907 | 624,957 | 507,149 | 378,831 |
| Total current assets | US$ in thousands | 366,076 | 330,732 | 347,692 | 323,127 | 238,035 |
| Total current liabilities | US$ in thousands | 167,569 | 272,394 | 322,072 | 224,461 | 147,295 |
| Working capital turnover | 3.42 | 10.42 | 24.39 | 5.14 | 4.17 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $678,722K ÷ ($366,076K – $167,569K)
= 3.42
Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate revenue. In the case of Harmonic Inc, the working capital turnover has shown varying trends over the past five years.
In December 31, 2020, the working capital turnover was 4.17, indicating that Harmonic Inc generated $4.17 of revenue for every dollar of working capital invested. This ratio improved to 5.14 by December 31, 2021, suggesting better efficiency in utilizing working capital.
A significant increase was observed by December 31, 2022, with the working capital turnover reaching 24.39. This spike may be a result of various factors such as improved inventory management or faster collection of receivables. However, the ratio dropped to 10.42 by December 31, 2023, suggesting a potential decrease in efficiency in utilizing working capital during that year.
Finally, by December 31, 2024, the working capital turnover decreased further to 3.42, indicating a decline in the efficiency of working capital management compared to the previous year.
Overall, it is important for Harmonic Inc to monitor its working capital turnover consistently to ensure optimal utilization of working capital resources and enhance efficiency in generating revenue.
Peer comparison
Dec 31, 2024