IPG Photonics Corporation (IPGP)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 977,134 | 1,287,440 | 1,429,550 | 1,460,860 | 1,200,720 |
Total current assets | US$ in thousands | 1,431,000 | 1,914,650 | 1,986,270 | 2,347,680 | 2,148,080 |
Total current liabilities | US$ in thousands | 205,019 | 214,861 | 274,646 | 313,433 | 214,578 |
Working capital turnover | 0.80 | 0.76 | 0.84 | 0.72 | 0.62 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $977,134K ÷ ($1,431,000K – $205,019K)
= 0.80
The working capital turnover of IPG Photonics Corporation has shown a generally increasing trend over the five-year period from 2020 to 2024. The ratio improved from 0.62 in 2020 to 0.80 in 2024, with fluctuations in between. This indicates that the company is becoming more efficient in generating sales revenue relative to its working capital investment. A higher working capital turnover ratio suggests that IPG Photonics is managing its working capital more effectively, potentially leading to improved liquidity and profitability. It signifies that the company is able to maximize its sales relative to the funds tied up in current assets, which can be a positive indicator of operational efficiency. Further analysis of the components of working capital, such as inventory turnover and accounts receivable turnover, could provide additional insights into the company's overall working capital management performance.
Peer comparison
Dec 31, 2024