Hologic Inc (HOLX)
Working capital turnover
| Sep 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,030,300 | 3,960,600 | 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 |
| Total current assets | US$ in thousands | 3,823,300 | 3,788,700 | 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 |
| Total current liabilities | US$ in thousands | 1,037,200 | 954,600 | 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 |
| Working capital turnover | 1.45 | 1.40 | 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,030,300K ÷ ($3,823,300K – $1,037,200K)
= 1.45
The working capital turnover ratio for Hologic Inc has fluctuated over the years, indicating changes in how efficiently the company is utilizing its working capital to generate sales revenue.
The ratio has ranged from a low of 1.20 in June 2023 to a high of 7.30 in September 2019. A lower ratio suggests that the company is taking longer to convert its working capital into sales, which may indicate inefficiencies in managing its current assets and liabilities.
On the other hand, a higher ratio indicates that the company is more effectively using its working capital to generate sales. Hologic Inc saw a significant improvement in its working capital turnover ratio from 2019 to 2021, indicating a more efficient use of its resources during that period.
However, the ratio has decreased in recent quarters, potentially signaling challenges in managing working capital effectively or changes in the company's operating environment. It would be important for Hologic Inc to closely monitor and address any factors affecting its working capital turnover to ensure optimal operational performance and financial health.
Peer comparison
Sep 30, 2024