Harmonic Inc (HLIT)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 601,654 | 597,493 | 625,363 | 626,252 | 617,168 | 611,864 | 581,045 | 535,811 | 500,824 | 470,444 | 438,894 | 398,174 | 364,172 | 361,941 | 376,886 | 388,697 | 388,955 | 380,432 | 371,146 | 385,534 |
| Total current assets | US$ in thousands | 330,732 | 329,137 | 331,516 | 338,105 | 345,299 | 336,683 | 338,426 | 325,400 | 323,127 | 291,175 | 301,121 | 260,667 | 238,035 | 214,043 | 207,877 | 231,625 | 251,362 | 236,887 | 185,503 | 181,071 |
| Total current liabilities | US$ in thousands | 272,394 | 275,219 | 287,689 | 305,898 | 322,072 | 221,942 | 221,984 | 230,856 | 224,461 | 203,739 | 186,371 | 192,565 | 147,295 | 145,770 | 145,401 | 196,728 | 191,899 | 146,450 | 138,311 | 134,104 |
| Working capital turnover | 10.31 | 11.08 | 14.27 | 19.44 | 26.57 | 5.33 | 4.99 | 5.67 | 5.08 | 5.38 | 3.82 | 5.85 | 4.01 | 5.30 | 6.03 | 11.14 | 6.54 | 4.21 | 7.86 | 8.21 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $601,654K ÷ ($330,732K – $272,394K)
= 10.31
The working capital turnover ratio reflects how efficiently Harmonic, Inc. is utilizing its working capital to generate revenue. A higher ratio indicates that the company is efficiently managing its working capital.
By analyzing the data provided, we observe a fluctuating trend in the working capital turnover ratio over the past eight quarters. The ratio has shown an increasing trend from Q1 2022 to Q1 2023, indicating an improvement in the utilization of working capital during this period. Notably, the ratio peaked at 26.91 in Q4 2022, suggesting that Harmonic, Inc. was exceptionally efficient in converting its working capital into revenue at that time.
However, in the most recent quarters, Q2 2023 and Q1 2023, the working capital turnover ratio decreased from its peak, signaling a potential decrease in efficiency in utilizing working capital to generate revenue. Despite these decreases, the ratios are still relatively high compared to historical values, indicating that Harmonic, Inc. continues to effectively leverage its working capital resources.
Overall, the working capital turnover ratios suggest that Harmonic, Inc. has demonstrated efficiency in managing its working capital over the analyzed period, with some fluctuations in recent quarters. Monitoring this ratio going forward will be crucial to assess the company's ongoing ability to efficiently utilize its working capital.
Peer comparison
Dec 31, 2023