Lumentum Holdings Inc (LITE)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,645,000 | 1,359,200 | 1,767,000 | 1,712,600 | 1,742,800 |
| Total current assets | US$ in thousands | 1,717,300 | 1,590,100 | 2,777,900 | 3,139,200 | 2,436,800 |
| Total current liabilities | US$ in thousands | 392,800 | 269,300 | 633,800 | 716,500 | 664,600 |
| Working capital turnover | 1.24 | 1.03 | 0.82 | 0.71 | 0.98 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,645,000K ÷ ($1,717,300K – $392,800K)
= 1.24
The analysis of Lumentum Holdings Inc.'s working capital turnover ratio over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations and trends indicative of the company's operational efficiency in utilizing its working capital to generate revenue.
In fiscal 2021, the ratio stood at 0.98, suggesting that the company generated approximately $0.98 in sales for every dollar of working capital employed. This level indicates a relatively efficient use of working capital at that time.
By June 30, 2022, the ratio declined notably to 0.71, reflecting a decrease in operational efficiency and implying that the company was generating less revenue per dollar of working capital than in the prior year. This reduction could be attributable to various factors such as increased working capital levels, slower sales growth, or operational adjustments.
In fiscal 2023, the ratio experienced a modest recovery to 0.82, indicating some improvement in how effectively working capital was being utilized relative to the previous year’s decline. This suggests that the company might have undertaken measures to optimize working capital management or experienced growth in sales relative to its working capital.
The upward trend continued in fiscal 2024, with the ratio reaching 1.03. This signifies a more efficient utilization of working capital, with sales slightly surpassing the working capital base, or improvements in receivables, inventory, or payables management contributing to this increase.
By June 30, 2025, the ratio further improved to 1.24, representing the highest level within the analyzed period. This indicates a substantial enhancement in operational efficiency, with the company effectively generating higher sales relative to its working capital investments. It may also reflect strategic improvements in working capital management or increased sales momentum.
Overall, the progression from 0.98 in 2021 to 1.24 in 2025 illustrates a general trend of improving working capital utilization over the analyzed period, with some fluctuations. The recent increase suggests that Lumentum Holdings Inc. has been making progress in optimizing its working capital to support higher sales efficiency.
Peer comparison
Jun 30, 2025