Littelfuse Inc (LFUS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,190,770 | 2,362,660 | 2,513,900 | 2,079,930 | 1,445,700 |
| Total current assets | US$ in thousands | 1,552,010 | 1,408,600 | 1,511,800 | 1,270,210 | 1,217,310 |
| Total current liabilities | US$ in thousands | 433,905 | 375,494 | 572,295 | 434,633 | 275,648 |
| Working capital turnover | 1.96 | 2.29 | 2.68 | 2.49 | 1.54 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,190,770K ÷ ($1,552,010K – $433,905K)
= 1.96
The working capital turnover of Littelfuse Inc has shown fluctuations over the past five years. It increased from 1.54 in December 31, 2020, to 2.49 in December 31, 2021, indicating improved efficiency in utilizing working capital to support the company's operations.
Further, the ratio continued to rise to 2.68 by December 31, 2022, reflecting an even better performance in managing working capital. However, there was a slight decrease in the ratio to 2.29 by December 31, 2023, suggesting a possible temporary dip in efficiency in utilizing working capital effectively.
By December 31, 2024, the working capital turnover ratio stood at 1.96, below the previous year's level but still higher than the base year of 2020. This implies that the company's ability to generate sales relative to its working capital has softened compared to the peak year of 2022.
Overall, the trend in Littelfuse Inc's working capital turnover indicates fluctuations in efficiency in utilizing working capital to support its operations over the past five years. It would be important for the company to monitor and manage its working capital effectively to ensure optimal operational efficiency and financial performance.
Peer comparison
Dec 31, 2024