Knowles Cor (KN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 553,500 | 456,800 | 764,700 | 868,100 | 764,300 |
| Total current assets | US$ in thousands | 361,400 | 428,800 | 362,400 | 380,300 | 419,600 |
| Total current liabilities | US$ in thousands | 197,600 | 164,600 | 99,100 | 166,200 | 297,300 |
| Working capital turnover | 3.38 | 1.73 | 2.90 | 4.05 | 6.25 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $553,500K ÷ ($361,400K – $197,600K)
= 3.38
Working capital turnover is a financial ratio that measures a company's efficiency in managing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively using its working capital to support its operations and generate sales.
Analyzing the working capital turnover of Knowles Cor over the years shows a decreasing trend. In December 31, 2020, the working capital turnover was 6.25, indicating that the company generated $6.25 in sales for every dollar of working capital invested. However, this ratio decreased to 4.05 by December 31, 2021, and further declined to 2.90 by December 31, 2022.
The ratio reached its lowest point of 1.73 on December 31, 2023, suggesting that the company's efficiency in utilizing its working capital to generate sales revenue decreased significantly. Subsequently, there was an improvement in the ratio to 3.38 by December 31, 2024.
The decreasing trend in Knowles Cor's working capital turnover indicates potential inefficiencies in managing its working capital to support sales growth. It is important for the company to closely monitor and improve its working capital management to enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024