Leidos Holdings Inc (LDOS)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,438,000 | 14,396,000 | 13,737,000 | 12,297,000 | 11,094,000 |
| Total current assets | US$ in thousands | 4,005,000 | 3,643,000 | 3,619,000 | 3,339,000 | 2,812,000 |
| Total current liabilities | US$ in thousands | 2,990,000 | 3,947,000 | 3,229,000 | 2,907,000 | 2,333,000 |
| Working capital turnover | 15.21 | — | 35.22 | 28.47 | 23.16 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,438,000K ÷ ($4,005,000K – $2,990,000K)
= 15.21
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.
In the case of Leidos Holdings Inc, the working capital turnover has been fluctuating over the past five years. In 2019, the ratio was 23.16, indicating that for every $1 of working capital, the company generated $23.16 in revenue. This suggests that the company was efficient in utilizing its working capital to generate sales.
In 2020, the ratio increased to 28.47, showing an improvement in efficiency in utilizing working capital to generate revenue. The ratio further improved in 2021 to 35.22, indicating even better utilization of working capital.
However, in 2022, the working capital turnover ratio was not available, but it seems to have dropped significantly in 2023 to 15.21. This decrease may suggest a potential inefficiency in utilizing working capital to generate revenue, compared to the previous years.
Overall, it is important for Leidos Holdings Inc to closely monitor its working capital turnover ratio to ensure optimal efficiency in utilizing working capital to drive revenue growth.
Peer comparison
Dec 31, 2023