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.
Peer comparison
Dec 31, 2024