Leidos Holdings Inc (LDOS)
Working capital turnover
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 16,510,000 | 16,066,000 | 15,714,000 | 15,438,000 | 15,155,000 | 14,842,000 | 14,601,000 | 14,396,000 | 14,190,000 | 14,065,000 | 13,916,000 | 13,737,000 | 13,498,000 | 13,257,000 | 12,723,000 | 12,297,000 | 11,999,000 | 11,592,000 | 11,406,000 | 11,094,000 |
| Total current assets | US$ in thousands | 4,428,000 | 4,665,000 | 4,150,000 | 4,005,000 | 3,991,000 | 3,576,000 | 3,665,000 | 3,643,000 | 3,841,000 | 3,526,000 | 3,487,000 | 3,619,000 | 3,569,000 | 3,263,000 | 3,257,000 | 3,339,000 | 3,199,000 | 3,052,000 | 2,868,000 | 2,812,000 |
| Total current liabilities | US$ in thousands | 3,654,000 | 3,782,000 | 3,084,000 | 2,990,000 | 3,040,000 | 2,855,000 | 3,161,000 | 3,947,000 | 4,141,000 | 3,906,000 | 3,494,000 | 3,229,000 | 3,347,000 | 3,108,000 | 2,920,000 | 2,907,000 | 3,398,000 | 3,429,000 | 4,290,000 | 2,333,000 |
| Working capital turnover | 21.33 | 18.19 | 14.74 | 15.21 | 15.94 | 20.59 | 28.97 | — | — | — | — | 35.22 | 60.80 | 85.53 | 37.75 | 28.47 | — | — | — | 23.16 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $16,510,000K ÷ ($4,428,000K – $3,654,000K)
= 21.33
The working capital turnover ratio of Leidos Holdings Inc has shown fluctuating trends over the years. In December 2019, the working capital turnover was 23.16, indicating that the company generated revenue 23.16 times for every dollar of working capital invested. The ratio remained consistent in subsequent quarters until March 2021, where it significantly increased to 37.75. This suggests an improvement in the efficiency of utilizing working capital to generate sales.
In June 2021, the working capital turnover ratio surged to 85.53, showcasing a substantial increase in operational efficiency. This spike may be attributed to enhanced management of inventory, payables, and receivables. However, in the following quarters, the ratio gradually decreased, reaching 14.74 by March 2024.
The declining trend from 2021 to 2024 may imply less effective management of working capital in generating sales. Companies typically aim for a higher working capital turnover ratio as it signifies superior utilization of resources. Leidos Holdings Inc may need to review its working capital management practices to improve operational efficiency and overall financial performance.
Peer comparison
Dec 31, 2024