Kratos Defense & Security Solutions (KTOS)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,136,300 1,037,100 898,300 811,500 747,700
Total current assets US$ in thousands 872,100 594,200 582,600 758,100 764,800
Total current liabilities US$ in thousands 296,700 292,500 234,200 221,100 197,600
Working capital turnover 1.97 3.44 2.58 1.51 1.32

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,136,300K ÷ ($872,100K – $296,700K)
= 1.97

The analysis of Kratos Defense & Security Solutions' working capital turnover over the specified period reveals a notable upward trend from December 31, 2020, through December 31, 2023, followed by a decline in 2024. Specifically, the working capital turnover ratio increased from 1.32 in 2020 to 1.51 in 2021, indicating improved efficiency in utilizing working capital to generate sales. The upward trajectory continued significantly in 2022, with the ratio reaching 2.58, suggesting that the company was increasingly effective at converting working capital into revenue.

This positive trend persisted into 2023, with the ratio further rising to 3.44, which represents a substantial enhancement in operational efficiency and utilization of current assets relative to working capital. However, in 2024, the ratio decreased to 1.97, indicating a deterioration in the efficiency of working capital utilization.

Overall, the progression from 2020 through 2023 reflects a period of operational improvement and increased effectiveness in managing working capital relative to sales. The subsequent decline in 2024 suggests potential challenges or shifts in operational metrics that may warrant further investigation to understand underlying causes, such as changes in sales volume, inventory management, receivables, or payables.


Peer comparison

Dec 31, 2024

Company name
Symbol
Working capital turnover
Kratos Defense & Security Solutions
KTOS
1.97
Lockheed Martin Corporation
LMT
29.25