Littelfuse Inc (LFUS)
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 | 2,318,462 | 2,418,117 | 2,465,213 | 2,461,812 | 2,463,322 | 2,383,122 | 2,282,657 | 2,203,251 | 2,044,243 | 1,905,343 | 1,766,270 | 1,553,224 | 1,439,034 | 1,376,861 | 1,335,553 | 1,423,926 | 1,481,403 | 1,545,161 | 1,626,151 | 1,680,487 |
| Total current assets | US$ in thousands | 1,408,600 | 1,458,320 | 1,441,350 | 1,401,600 | 1,511,800 | 1,431,310 | 1,718,820 | 1,318,210 | 1,270,210 | 1,435,940 | 1,318,920 | 1,192,410 | 1,217,310 | 1,148,930 | 1,119,160 | 1,092,480 | 1,004,390 | 1,007,590 | 1,039,550 | 1,030,140 |
| Total current liabilities | US$ in thousands | 375,494 | 481,646 | 495,680 | 519,638 | 572,295 | 448,810 | 398,769 | 365,344 | 434,633 | 421,640 | 381,692 | 326,545 | 275,648 | 234,606 | 209,157 | 208,215 | 225,562 | 248,749 | 266,411 | 269,550 |
| Working capital turnover | 2.24 | 2.48 | 2.61 | 2.79 | 2.62 | 2.43 | 1.73 | 2.31 | 2.45 | 1.88 | 1.88 | 1.79 | 1.53 | 1.51 | 1.47 | 1.61 | 1.90 | 2.04 | 2.10 | 2.21 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,318,462K ÷ ($1,408,600K – $375,494K)
= 2.24
The working capital turnover ratio for Littelfuse Inc has experienced fluctuations over the given periods, indicating variations in the efficiency of the company in managing its working capital. The ratio measures how effectively the company is utilizing its working capital to generate sales revenue.
The working capital turnover ratio for Littelfuse Inc ranged from a low of 1.47 in June 2020 to a high of 2.79 in March 2023. Higher ratios suggest that the company is efficiently using its current assets to generate sales. Conversely, lower ratios may indicate inefficiencies in working capital management.
Overall, the trend in the working capital turnover ratio fluctuated during the periods under review. Notably, the ratio improved from 1.47 in June 2020 to 2.79 in March 2023, suggesting enhanced efficiency in utilizing working capital to drive sales. However, there were periods, such as March 2021 and September 2022, where the ratio decreased, signaling potential challenges in working capital management during those periods.
It is important for Littelfuse Inc to sustain or improve its working capital turnover ratio over time to ensure efficient utilization of resources and maximize sales generation. This analysis underscores the significance of monitoring working capital turnover as a key indicator of operational efficiency and financial performance.
Peer comparison
Dec 31, 2023