Knowles Cor (KN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 707,600 | 764,700 | 868,100 | 764,300 | 854,800 |
| Total current assets | US$ in thousands | 428,800 | 362,400 | 380,300 | 419,600 | 388,400 |
| Total current liabilities | US$ in thousands | 164,600 | 99,100 | 166,200 | 297,300 | 151,500 |
| Working capital turnover | 2.68 | 2.90 | 4.05 | 6.25 | 3.61 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $707,600K ÷ ($428,800K – $164,600K)
= 2.68
The working capital turnover ratio of Knowles Corp has shown a decreasing trend over the past five years, from 6.25 in 2019 to 2.68 in 2023. This suggests that the company is becoming less efficient in utilizing its working capital to generate revenue. A lower working capital turnover ratio may indicate that Knowles Corp is holding excessive inventory, experiencing issues with collecting receivables, or inefficiently managing its short-term assets and liabilities.
A working capital turnover ratio of 2.68 in 2023 means that for every dollar of working capital, Knowles Corp generated $2.68 of revenue. This demonstrates a decrease in the efficiency of the company's working capital management compared to the previous years. It is essential for Knowles Corp to closely monitor and improve its working capital turnover to ensure optimal utilization of resources and maximize profitability.
Peer comparison
Dec 31, 2023