IPG Photonics Corporation (IPGP)

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 977,134 1,041,690 1,109,948 1,192,274 1,287,439 1,322,085 1,369,690 1,406,742 1,429,547 1,460,475 1,490,619 1,485,254 1,460,860 1,433,023 1,372,314 1,297,067 1,200,724 1,170,721 1,181,418 1,248,776
Total current assets US$ in thousands 1,431,000 1,570,410 1,717,950 1,829,620 1,914,650 1,920,460 1,924,070 1,915,590 1,986,270 2,119,090 2,170,850 2,282,830 2,347,680 2,325,180 2,290,590 2,202,260 2,148,080 2,031,650 1,950,530 1,874,530
Total current liabilities US$ in thousands 205,019 194,182 190,483 192,127 214,861 219,709 228,187 249,522 274,646 295,788 315,902 279,836 313,433 292,840 255,905 214,753 214,578 201,445 195,286 195,432
Working capital turnover 0.80 0.76 0.73 0.73 0.76 0.78 0.81 0.84 0.84 0.80 0.80 0.74 0.72 0.71 0.67 0.65 0.62 0.64 0.67 0.74

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $977,134K ÷ ($1,431,000K – $205,019K)
= 0.80

IPG Photonics Corporation's working capital turnover has exhibited fluctuations over the provided time period. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.

From March 31, 2020, to December 31, 2024, IPG Photonics Corporation's working capital turnover ratio ranged from 0.62 to 0.84. The ratio saw a declining trend in the first half of the period, reaching a low of 0.62 on December 31, 2020. However, from June 30, 2022, onwards, the ratio improved steadily, reaching a peak of 0.84 on March 31, 2023 and maintaining relatively stable levels thereafter.

The increase in the working capital turnover ratio in the latter part of the period suggests that the company became more efficient in utilizing its working capital to generate revenue. This could indicate improved management of inventory, receivables, and payables, leading to better overall operational efficiency.

Overall, the upward trend in the working capital turnover ratio for IPG Photonics Corporation from June 30, 2022, to December 31, 2024, reflects positively on the company's ability to generate revenue using its available working capital efficiently.