Hologic Inc (HOLX)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,030,300 | 4,030,400 | 4,862,800 | 5,632,300 | 3,776,400 |
| Total current assets | US$ in thousands | 3,823,300 | 4,184,500 | 3,862,000 | 3,168,700 | 2,222,300 |
| Total current liabilities | US$ in thousands | 1,037,200 | 1,207,300 | 937,700 | 1,326,800 | 1,239,300 |
| Working capital turnover | 1.45 | 1.35 | 1.66 | 3.06 | 3.84 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,030,300K ÷ ($3,823,300K – $1,037,200K)
= 1.45
Hologic Inc's working capital turnover has experienced fluctuations over the past five years. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates a more efficient use of working capital.
In 2020, Hologic Inc had a high working capital turnover of 3.84, indicating strong efficiency in generating revenue with its working capital. However, the ratio has progressively decreased over the following years. In 2021, the ratio dropped significantly to 3.06, suggesting a less efficient use of working capital compared to the previous year.
The trend continued in 2022 and 2023, where the working capital turnover ratios were 1.66 and 1.35, respectively. These lower ratios may indicate potential issues with managing working capital effectively to generate revenue during these years.
In the most recent year, 2024, Hologic Inc's working capital turnover improved slightly to 1.45. While the ratio is higher than in 2023, it remains lower than the levels seen in 2020 and 2021.
Overall, Hologic Inc's working capital turnover has shown fluctuations over the past five years, with a general trend of decreasing efficiency in utilizing working capital to generate revenue. This trend may warrant further investigation into the company's working capital management practices and operational efficiency.
Peer comparison
Sep 30, 2024