Ichor Holdings Ltd (ICHR)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 849,040 811,120 1,280,070 1,096,920 914,236
Total current assets US$ in thousands 452,620 401,365 513,458 462,771 495,714
Total current liabilities US$ in thousands 135,670 98,962 166,292 208,303 162,034
Working capital turnover 2.68 2.68 3.69 4.31 2.74

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $849,040K ÷ ($452,620K – $135,670K)
= 2.68

The working capital turnover ratio of Ichor Holdings Ltd has shown some fluctuation over the past five years. It increased from 2.74 in December 2020 to 4.31 in December 2021, indicating a significant improvement in the efficiency of converting working capital into sales during that period. However, in the subsequent years, the ratio decreased to 3.69 in December 2022, and then further dropped to 2.68 in both December 2023 and December 2024.

This fluctuation suggests that the company may have experienced some challenges in managing its working capital efficiently in the later years, potentially leading to lower turnover rates. It is essential for Ichor Holdings Ltd to closely monitor and effectively manage its working capital components, such as accounts receivable, inventory, and accounts payable, to maintain a healthy level of liquidity and improve its overall financial performance.