Knowles Cor (KN)
Working capital turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 707,600 | 689,500 | 692,600 | 707,600 | 764,700 | 801,900 | 856,700 | 868,500 | 868,100 | 877,000 | 849,800 | 802,200 | 764,300 | 755,000 | 785,100 | 838,100 | 854,800 | 844,700 | 845,000 | 828,200 |
| Total current assets | US$ in thousands | 428,800 | 387,800 | 375,900 | 383,000 | 362,400 | 377,200 | 378,700 | 383,900 | 380,300 | 435,400 | 385,000 | 450,600 | 419,600 | 434,900 | 443,000 | 443,000 | 388,400 | 394,300 | 362,900 | 344,900 |
| Total current liabilities | US$ in thousands | 164,600 | 107,000 | 108,400 | 125,300 | 99,100 | 131,300 | 149,100 | 143,000 | 166,200 | 313,500 | 301,800 | 302,200 | 297,300 | 138,000 | 231,800 | 132,900 | 151,500 | 139,300 | 127,500 | 127,400 |
| Working capital turnover | 2.68 | 2.46 | 2.59 | 2.75 | 2.90 | 3.26 | 3.73 | 3.61 | 4.05 | 7.19 | 10.21 | 5.41 | 6.25 | 2.54 | 3.72 | 2.70 | 3.61 | 3.31 | 3.59 | 3.81 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $707,600K ÷ ($428,800K – $164,600K)
= 2.68
The working capital turnover of Knowles Corp has exhibited a fluctuating trend over the past eight quarters. The ratio has ranged from a low of 2.46 in Q3 2023 to a high of 3.73 in Q2 2022.
A higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate revenue. Knowles Corp's working capital turnover ratio peaked in Q2 2022, suggesting efficient management of its current assets and liabilities in that period.
On the other hand, the decrease in the ratio in more recent quarters, such as Q3 2022 and Q4 2023, may indicate a decline in the company's ability to efficiently convert working capital into sales. This could be a point of concern as it may imply less effective management of the company's liquidity and operational efficiency.
It is essential for Knowles Corp to closely monitor its working capital turnover ratio and implement strategies to optimize its working capital management in order to enhance overall operational performance and financial health.
Peer comparison
Dec 31, 2023