IDEXX Laboratories Inc (IDXX)

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	3,897,506	3,844,819	3,784,803	3,724,853	3,660,953	3,587,920	3,514,054	3,430,970	3,367,324	3,339,846	3,308,606	3,274,202	3,215,360	3,135,208	3,046,576	2,858,026	2,706,655	2,591,163	2,474,677	2,457,188
Total current assets	US$ in thousands	1,399,900	1,433,740	1,528,610	1,501,970	1,495,250	1,384,230	1,179,020	1,149,450	1,101,480	1,058,860	1,042,820	1,089,770	955,655	938,037	1,001,230	1,097,800	1,062,740	868,679	779,612	721,351
Total current liabilities	US$ in thousands	1,067,920	1,009,220	1,116,700	956,902	951,547	970,193	883,859	1,065,630	1,235,800	1,189,940	1,166,550	971,341	763,579	633,849	651,809	620,662	582,761	526,841	540,584	846,241
Working capital turnover		11.74	9.06	9.19	6.83	6.73	8.67	11.91	40.93	—	—	—	27.65	16.74	10.31	8.72	5.99	5.64	7.58	10.35	—

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,897,506K ÷ ($1,399,900K – $1,067,920K)
= 11.74

IDEXX Laboratories Inc's working capital turnover ratio demonstrates the efficiency with which the company is utilizing its working capital to generate sales revenue. From the provided data, we observe fluctuations in the working capital turnover ratio over the years.

- The working capital turnover ratio for IDEXX Laboratories Inc was not available for March 31, 2020, June 30, 2022, and September 30, 2022, indicating potential missing or unreported data points.
- The ratio decreased from 10.35 on June 30, 2020, to 5.64 on December 31, 2020, suggesting a decline in the company's ability to efficiently convert working capital into revenue during this period.
- Subsequently, there was a gradual improvement in the ratio, reaching 16.74 on December 31, 2021, indicating a significant increase in efficiency in utilizing working capital to generate sales.
- The trend continued to improve as the ratio surged to 40.93 on March 31, 2023, reflecting a substantial enhancement in the company's working capital management.
- However, the ratio dropped to 6.83 on March 31, 2024, displaying a reduction in efficiency compared to the prior quarter.
- The working capital turnover ratio thereafter showed fluctuations between 6.73 and 11.74 in the following quarters, indicating varying degrees of efficiency in utilizing working capital to drive sales revenue.

In conclusion, the working capital turnover ratio for IDEXX Laboratories Inc fluctuated over the years, with periods of significant improvements and occasional declines in efficiency in converting working capital into sales revenue.