IDEXX Laboratories Inc (IDXX)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,660,950	3,367,320	3,215,360	2,706,660	2,406,910
Total current assets	US$ in thousands	1,495,250	1,101,480	955,655	1,062,740	679,639
Total current liabilities	US$ in thousands	951,547	1,235,800	763,579	582,761	725,337
Working capital turnover		6.73	—	16.74	5.64	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,660,950K ÷ ($1,495,250K – $951,547K)
= 6.73

The working capital turnover ratio is a measure of how efficiently a company is utilizing its working capital to generate sales revenue. Higher ratios indicate better efficiency in the management of working capital.

Based on the data provided for Idexx Laboratories, Inc., the working capital turnover ratio was 6.73 in 2023, 16.74 in 2021, and 5.64 in 2020. A higher working capital turnover ratio in 2021 suggests that the company was able to generate more revenue relative to its working capital investment compared to 2020. However, the absence of data for 2022 and 2019 limits a complete trend analysis.

Overall, the fluctuations in the working capital turnover ratio for Idexx Laboratories, Inc. indicate varying levels of efficiency in utilizing working capital to generate sales revenue over the years. It is crucial for the company to consistently monitor and manage its working capital effectively to optimize operational performance and financial health.