Ichor Holdings Ltd (ICHR)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 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
Revenue (ttm)	US$ in thousands	849,040	819,230	804,852	786,633	811,120	909,359	1,068,241	1,212,793	1,280,069	1,265,537	1,172,749	1,125,497	1,096,917	1,054,695	1,019,518	958,774	914,236	858,625	785,403	703,034
Total current assets	US$ in thousands	452,620	447,061	418,636	421,221	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
Total current liabilities	US$ in thousands	135,670	122,939	98,116	101,249	98,962	115,668	106,404	118,225	166,292	205,063	198,920	194,066	208,303	184,098	197,738	183,084	162,034	148,299	155,357	151,437
Working capital turnover		2.68	2.53	2.51	2.46	2.68	2.71	3.09	3.45	3.69	3.83	3.89	4.24	4.31	2.89	2.97	3.00	2.74	4.83	4.85	5.48

December 31, 2024 calculation

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

Ichor Holdings Ltd's working capital turnover ratio has fluctuated over the past several periods. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

From March 31, 2020, to September 30, 2021, the working capital turnover ratio was relatively stable, ranging between 2.74 and 5.48. However, there was a noticeable decline from December 31, 2021, to June 30, 2022, with the ratio dropping to levels around 2.97 to 2.74.

Despite some fluctuations, the company managed to improve its working capital turnover ratio from December 31, 2022, to March 31, 2024, with the ratio increasing steadily from 3.69 to 2.46.

Overall, the trend shows some volatility but also indicates efforts to optimize the utilization of working capital to support sales activity. Further analysis of the company's operational efficiency and liquidity management may provide more insights into the factors influencing these fluctuations in the working capital turnover ratio.