Kulicke and Soffa Industries Inc (KLIC)

Working capital turnover

		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	Dec 31, 2019
Revenue (ttm)	US$ in thousands	706,232	727,233	736,500	737,447	742,491	826,484	1,007,704	1,218,965	1,503,620	1,702,633	1,754,814	1,710,695	1,517,664	1,210,026	936,158	746,736	623,176	585,315	561,974	527,141
Total current assets	US$ in thousands	994,953	1,013,090	1,050,420	1,177,650	1,189,060	1,183,050	1,188,870	1,270,710	1,332,050	1,386,120	1,321,860	1,463,060	1,351,890	1,179,590	1,035,740	949,611	860,196	839,193	970,427	926,607
Total current liabilities	US$ in thousands	183,794	165,977	165,736	181,288	181,551	196,776	195,751	221,055	248,681	274,039	274,889	343,805	351,875	308,260	259,572	200,690	157,893	142,804	262,037	202,203
Working capital turnover		0.87	0.86	0.83	0.74	0.74	0.84	1.01	1.16	1.39	1.53	1.68	1.53	1.52	1.39	1.21	1.00	0.89	0.84	0.79	0.73

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (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 shown fluctuations over the period under consideration. The ratio indicates how efficiently the company is using its working capital to generate sales.

The trend shows some variability with the ratio declining from 1.16 in December 2022 to 0.74 in December 2023, and then gradually increasing to 0.87 by September 2024. During this time frame, the ratio peaked at 1.68 in June 2022, indicating a significant efficiency in utilizing working capital to generate sales.

Overall, the working capital turnover ratio has generally been above 1, which implies that the company is effectively utilizing its working capital to support its sales activities. However, the fluctuations in the ratio suggest potential changes in the company's working capital management efficiency over time.

It is important for stakeholders to further investigate the reasons behind these fluctuations to ensure that the company is effectively managing its working capital to support its operations and growth strategies.