Knowles Cor (KN)
Working capital turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 686,100 | 758,800 | 724,400 | 692,700 | 640,600 | 622,500 | 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 |
| Total current assets | US$ in thousands | 361,400 | 436,000 | 422,900 | 467,900 | 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 |
| Total current liabilities | US$ in thousands | 197,600 | 185,900 | 178,900 | 170,300 | 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 |
| Working capital turnover | 4.19 | 3.03 | 2.97 | 2.33 | 2.42 | 2.22 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $686,100K ÷ ($361,400K – $197,600K)
= 4.19
The working capital turnover ratio for Knowles Cor has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio measures how efficiently a company utilizes its working capital to generate sales revenue.
Analysing the trend of the working capital turnover ratio, we observe that it initially increased from 2.70 on March 31, 2020, to 6.25 on December 31, 2020, indicating an improvement in the company's ability to efficiently convert its working capital into sales. Subsequently, the ratio continued to show variability, with peaks and troughs until December 31, 2024, where it stood at 4.19.
The increased turnover ratio signifies that Knowles Cor has been able to effectively utilize its working capital to generate sales revenue. However, the fluctuations in the ratio over the period might indicate changes in the company's operating cycle, management of inventory, accounts receivable, and accounts payable.
It is crucial for Knowles Cor to closely monitor its working capital turnover ratio to ensure efficient management of its working capital and optimize its operational performance. Periodic reviews and analysis of this ratio can help the company identify areas for improvement in its working capital management practices to enhance overall financial efficiency.
Peer comparison
Dec 31, 2024