Leidos Holdings Inc (LDOS)
Working capital turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 10,787,000 | 10,527,000 | 10,293,000 |
| Total current assets | US$ in thousands | 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 | 2,924,000 | 2,914,000 | 2,860,000 |
| Total current liabilities | US$ in thousands | 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 | 2,527,000 | 2,246,000 | 2,322,000 |
| Working capital turnover | 15.21 | 15.94 | 20.59 | 28.97 | — | — | — | — | 35.22 | 60.80 | 85.53 | 37.75 | 28.47 | — | — | — | 23.16 | 27.17 | 15.76 | 19.13 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,438,000K ÷ ($4,005,000K – $2,990,000K)
= 15.21
Working capital turnover measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates better efficiency in managing working capital.
Looking at the data provided for Leidos Holdings Inc from 2019 to 2023, we see a fluctuating trend in working capital turnover. The ratio has generally been on an upward trajectory, starting at 15.76 in Q1 2019 and peaking at 85.53 in Q2 2021. This sharp increase suggests significant improvement in utilizing working capital to generate sales during this period.
From Q2 2021 to Q1 2023, the working capital turnover continued to rise steadily, reaching a peak of 28.97 in Q1 2023. This indicates that the company has been effectively managing its working capital to support increasing sales revenue.
However, there is a lack of data for Q4 2022 and Q1 2022, which makes it challenging to assess the trend during that period accurately. Nonetheless, the available data points suggest that Leidos Holdings Inc has been successful in optimizing its working capital efficiency over the past few years.
In conclusion, the increasing trend in working capital turnover for Leidos Holdings Inc indicates improving efficiency in utilizing working capital to drive sales, reflecting positively on the company's financial management and operational performance.
Peer comparison
Dec 31, 2023