Keysight Technologies Inc (KEYS)
Working capital turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,342,000 | 5,464,000 | 5,596,000 | 5,590,000 | 5,551,000 | 5,420,000 | 5,271,000 | 5,141,000 | 5,011,000 | 4,941,000 | 4,867,000 | 4,632,000 | 4,306,000 | 4,221,000 | 4,121,000 | 4,197,000 | 4,392,000 | 4,303,000 | 4,171,000 | 4,088,000 |
| Total current assets | US$ in thousands | 4,076,000 | 4,809,000 | 4,902,000 | 4,764,000 | 4,498,000 | 4,234,000 | 3,961,000 | 3,886,000 | 3,808,000 | 3,834,000 | 3,829,000 | 3,718,000 | 3,566,000 | 3,374,000 | 3,278,000 | 3,293,000 | 3,326,000 | 3,215,000 | 2,935,000 | 2,824,000 |
| Total current liabilities | US$ in thousands | 2,116,000 | 2,049,000 | 1,338,000 | 1,422,000 | 1,465,000 | 1,407,000 | 1,312,000 | 1,360,000 | 1,257,000 | 1,309,000 | 1,199,000 | 1,288,000 | 1,124,000 | 1,081,000 | 980,000 | 949,000 | 982,000 | 1,003,000 | 1,432,000 | 1,485,000 |
| Working capital turnover | 2.73 | 1.98 | 1.57 | 1.67 | 1.83 | 1.92 | 1.99 | 2.04 | 1.96 | 1.96 | 1.85 | 1.91 | 1.76 | 1.84 | 1.79 | 1.79 | 1.87 | 1.95 | 2.78 | 3.05 |
January 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,342,000K ÷ ($4,076,000K – $2,116,000K)
= 2.73
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.
Keysight Technologies Inc's working capital turnover has varied over the past eight quarters, ranging from 1.57 to 2.73. In Q1 2024, the ratio was 2.73, indicating that the company generated $2.73 in revenue for every $1 of working capital invested. This represents an improvement from the previous quarter's ratio of 1.98.
The trend over the past eight quarters shows some fluctuations in working capital turnover, with the ratio generally hovering above 1.5. The highest ratio was in Q1 2024, suggesting increased efficiency in managing working capital to generate revenue. Conversely, the lowest ratio was in Q3 2023 at 1.57, indicating a slightly lower efficiency in that period.
Overall, it appears that Keysight Technologies Inc has been effectively utilizing its working capital to generate revenue, with some fluctuations in efficiency observed over the past two years. Further analysis and comparison with industry benchmarks may provide additional insights into the company's working capital management.
Peer comparison
Jan 31, 2024