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