Ichor Holdings Ltd (ICHR)

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	791,741	890,431	1,051,200	1,198,719	1,269,013	1,256,502	1,165,476	1,118,696	1,089,729	1,047,699	1,011,957	950,502	905,509	849,443	775,610	692,781	610,190	562,064	582,925	693,162
Total current assets	US$ in thousands	401,365	451,325	452,065	469,598	513,458	535,582	500,493	459,563	462,771	549,515	540,520	503,029	495,714	326,200	317,389	279,745	276,947	218,222	196,366	205,615
Total current liabilities	US$ in thousands	98,962	115,668	106,404	118,225	166,292	205,063	198,920	194,066	208,303	180,973	197,738	183,084	162,034	148,299	155,357	151,437	163,867	115,002	85,933	90,490
Working capital turnover		2.62	2.65	3.04	3.41	3.66	3.80	3.86	4.21	4.28	2.84	2.95	2.97	2.71	4.77	4.79	5.40	5.40	5.45	5.28	6.02

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $791,741K ÷ ($401,365K – $98,962K)
= 2.62

The working capital turnover ratio for Ichor Holdings Ltd has fluctuated over the periods analyzed. The ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher ratio typically suggests better efficiency in utilizing working capital.

The trend for Ichor Holdings Ltd's working capital turnover shows a general increase from 2019 through 2020, reaching its peak in the first quarter of 2020 at 6.02. However, the ratio has since fluctuated, with some quarters showing decreases and others increases.

Notably, the working capital turnover ratio for the most recent quarter, December 2023, stands at 2.62, which is lower compared to the ratios observed in the majority of the periods reviewed. This could suggest a decrease in efficiency in utilizing working capital to generate sales revenue during that period.

Overall, further analysis and comparison with industry averages may provide additional insights into Ichor Holdings Ltd's efficiency in managing its working capital.