Kulicke and Soffa Industries Inc (KLIC)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	706,232	742,491	1,503,620	1,517,660	623,176
Total current assets	US$ in thousands	994,953	1,189,060	1,332,050	1,351,890	860,196
Total current liabilities	US$ in thousands	183,794	181,551	248,681	351,875	157,893
Working capital turnover		0.87	0.74	1.39	1.52	0.89

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $706,232K ÷ ($994,953K – $183,794K)
= 0.87

The working capital turnover ratio for Kulicke and Soffa Industries Inc has fluctuated over the past five years, indicating varying efficiency levels in managing its working capital. In 2024, the ratio stands at 0.87, signifying that the company generated $0.87 in revenue for every dollar of working capital invested. This is a slight improvement from the previous year's ratio of 0.74 but remains lower than the ratios observed in 2022 and 2021, which were 1.39 and 1.52, respectively.

The decrease in the working capital turnover ratio from 2021 to 2024 may suggest that the company is experiencing challenges in effectively utilizing its working capital to generate sales. A lower ratio could indicate inefficiencies in managing inventory, receivables, or payables, resulting in a reduced turnover of working capital.

It is essential for Kulicke and Soffa Industries Inc to closely monitor and improve its working capital turnover ratio to ensure optimal utilization of resources and maximize profitability. Further analysis and comparison with industry benchmarks may help identify areas for improvement and strategic adjustments to enhance operational efficiency and financial performance.