KLA-Tencor Corporation (KLAC)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,812,250 | 10,496,100 | 9,211,880 | 6,918,730 | 5,806,420 |
| Total current assets | US$ in thousands | 10,031,100 | 8,372,030 | 7,168,910 | 5,696,250 | 4,723,540 |
| Total current liabilities | US$ in thousands | 4,660,770 | 3,742,840 | 2,871,080 | 2,103,230 | 1,699,790 |
| Working capital turnover | 1.83 | 2.27 | 2.14 | 1.93 | 1.92 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,812,250K ÷ ($10,031,100K – $4,660,770K)
= 1.83
The working capital turnover of KLA-Tencor Corporation has fluctuated over the past five years. The ratio measures how efficiently the company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is able to efficiently generate sales using its working capital.
In the most recent fiscal year ending June 30, 2024, the working capital turnover ratio stood at 1.83, which is lower than the previous year's ratio of 2.21. This suggests that KLA-Tencor Corporation generated less revenue relative to its working capital invested in the most recent year.
However, when compared to the ratios from the prior years, the working capital turnover for 2024 is somewhat in line with historical trends. It is important to note that a working capital turnover ratio of above 1 indicates that the company is effectively using its current assets to support sales operations.
Overall, the downward trend in the working capital turnover ratio over the past two years may indicate a decrease in the efficiency of KLA-Tencor Corporation in generating sales revenue relative to its working capital, which should be further investigated and closely monitored by stakeholders.
Peer comparison
Jun 30, 2024