Keysight Technologies Inc (KEYS)
Working capital turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,979,000 | 5,464,000 | 5,420,000 | 4,941,000 | 4,221,000 |
| Total current assets | US$ in thousands | 4,257,000 | 4,809,000 | 4,234,000 | 3,834,000 | 3,374,000 |
| Total current liabilities | US$ in thousands | 1,427,000 | 2,049,000 | 1,407,000 | 1,309,000 | 1,081,000 |
| Working capital turnover | 1.76 | 1.98 | 1.92 | 1.96 | 1.84 |
October 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,979,000K ÷ ($4,257,000K – $1,427,000K)
= 1.76
The working capital turnover ratio for Keysight Technologies Inc has ranged from 1.76 to 1.98 over the past five years. This ratio measures how efficiently the company is managing its working capital to generate sales revenue. A higher ratio generally indicates better efficiency in utilizing its working capital to support sales.
In this case, the fluctuating ratio suggests some variability in the company's ability to efficiently convert its working capital into sales over the years. The decreasing trend from 2023 to 2024 (1.98 to 1.76) indicates a potential decline in the efficiency of working capital management during that period. However, the ratio has generally been relatively stable around the range of 1.84 to 1.98, implying overall effectiveness in utilizing working capital to support sales.
Further analysis would be needed to understand the specific factors contributing to these fluctuations and to determine if any strategic changes or operational improvements are required to enhance working capital management efficiency in the future.
Peer comparison
Oct 31, 2024