Kratos Defense & Security Solutions (KTOS)
Working capital turnover
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,161,700 | 1,136,300 | 1,127,000 | 1,125,700 | 1,082,500 | 1,037,100 | 1,012,600 | 966,600 | 933,900 | 898,300 | 860,600 | 832,600 | 813,500 | 811,500 | 806,300 | 807,700 | 773,000 | 747,700 | 726,400 | 708,500 |
| Total current assets | US$ in thousands | 864,400 | 872,100 | 838,400 | 851,200 | 871,700 | 594,200 | 604,400 | 587,800 | 588,100 | 582,600 | 601,300 | 624,300 | 687,900 | 758,100 | 772,600 | 768,700 | 768,600 | 764,800 | 770,800 | 745,000 |
| Total current liabilities | US$ in thousands | 304,900 | 296,700 | 260,500 | 272,300 | 288,200 | 292,500 | 263,000 | 250,900 | 245,000 | 234,200 | 213,500 | 227,800 | 213,300 | 221,100 | 210,600 | 202,100 | 210,200 | 197,600 | 199,700 | 170,000 |
| Working capital turnover | 2.08 | 1.97 | 1.95 | 1.94 | 1.86 | 3.44 | 2.97 | 2.87 | 2.72 | 2.58 | 2.22 | 2.10 | 1.71 | 1.51 | 1.43 | 1.43 | 1.38 | 1.32 | 1.27 | 1.23 |
March 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,161,700K ÷ ($864,400K – $304,900K)
= 2.08
The analysis of Kratos Defense & Security Solutions' working capital turnover ratio over the period from June 2020 to March 2025 reveals a notable trend characterized by gradual increases followed by fluctuations. Initially, the ratio increased from 1.23 as of June 30, 2020, to a peak of 3.44 by December 2023, indicating a significant enhancement in the company's efficiency in utilizing its working capital to generate sales during this period.
This rising trend suggests that Kratos gradually improved its operational efficiency, possibly through better management of receivables, inventories, and payables or increased sales relative to working capital. The steady upward movement from 1.23 in mid-2020 to 2.97 in September 2023 signifies a consistent enhancement in working capital utilization.
However, a decline is observed starting in the first quarter of 2024, with the ratio dropping sharply to 1.86, its lowest point since early 2020. This decrease may reflect a reduction in sales efficiency, potential changes in working capital components, or strategic shifts affecting operational liquidity. The ratio then shows signs of recovery, reaching 2.08 by March 2025, approaching earlier levels.
Overall, the pattern indicates a period of significant efficiency gains culminating in late 2023, followed by a transient decline and subsequent stabilization at a comparatively lower level. This volatility underscores the importance of ongoing management strategies in sustaining optimal working capital effectiveness and ensuring consistent operational performance.
Peer comparison
Mar 31, 2025