Hologic Inc (HOLX)
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 | 3,969,300 | 4,030,400 | 4,038,300 | 4,056,600 | 4,465,800 | 4,862,700 | 5,226,100 | 5,391,700 | 5,493,600 | 5,632,300 | 5,662,700 | 5,317,300 | 4,535,800 | 3,776,500 | 3,295,300 | 3,324,800 | 3,387,100 | 3,367,300 | 3,315,000 | 3,286,600 |
| Total current assets | US$ in thousands | 3,494,200 | 4,184,500 | 4,339,300 | 4,211,400 | 4,021,200 | 3,862,000 | 3,909,000 | 3,881,400 | 3,506,200 | 3,168,700 | 2,418,200 | 2,662,400 | 2,596,300 | 2,222,300 | 1,982,800 | 1,936,600 | 1,637,600 | 1,793,100 | 1,591,800 | 1,511,000 |
| Total current liabilities | US$ in thousands | 899,000 | 1,207,300 | 981,300 | 955,000 | 956,200 | 937,700 | 1,000,900 | 1,305,100 | 1,278,700 | 1,326,800 | 1,464,600 | 1,036,400 | 1,056,000 | 1,239,300 | 1,345,700 | 1,480,900 | 1,043,300 | 1,070,100 | 1,015,200 | 1,045,200 |
| Working capital turnover | 1.53 | 1.35 | 1.20 | 1.25 | 1.46 | 1.66 | 1.80 | 2.09 | 2.47 | 3.06 | 5.94 | 3.27 | 2.94 | 3.84 | 5.17 | 7.30 | 5.70 | 4.66 | 5.75 | 7.06 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,969,300K ÷ ($3,494,200K – $899,000K)
= 1.53
The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing its current assets and liabilities.
Analyzing Hologic Inc's working capital turnover over the provided period, we observe varying levels of efficiency. The trend shows a decreasing trend from 7.30 in March 2020 to 1.20 in June 2023 before slightly increasing to 1.35 in September 2023.
During 2020 and early 2021, the company exhibited very high working capital turnover ratios, particularly in June 2021 when it reached 5.94. This suggests that Hologic was effectively using its working capital to generate revenue during this period.
However, from March 2022 onwards, the working capital turnover ratios have been on a decline. This decreasing trend may indicate challenges in efficiently utilizing working capital to support revenue generation. It is noteworthy that a working capital turnover ratio below industry norms could indicate inefficiencies in managing working capital.
It's essential for Hologic Inc to closely monitor and improve its working capital turnover ratio to ensure optimal utilization of its current assets and liabilities for generating revenue efficiently and sustaining long-term growth.
Peer comparison
Dec 31, 2023