Lumentum Holdings Inc (LITE)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,717,800 | 1,732,500 | 1,644,500 | 1,674,700 | 1,603,300 |
| Total current assets | US$ in thousands | 1,590,100 | 2,777,900 | 3,139,200 | 2,436,800 | 2,050,000 |
| Total current liabilities | US$ in thousands | 269,300 | 633,800 | 716,500 | 664,600 | 283,000 |
| Working capital turnover | 2.06 | 0.81 | 0.68 | 0.94 | 0.91 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,717,800K ÷ ($1,590,100K – $269,300K)
= 2.06
Lumentum Holdings Inc's working capital turnover has shown an increasing trend over the past five years, indicating that the company has been able to generate more revenue relative to its working capital.
In particular, the working capital turnover ratio has significantly improved from 0.91 in 2020 to 2.06 in 2024, showcasing an efficient use of working capital to support sales growth. This indicates that the company has been able to effectively manage its working capital resources to generate more sales.
The trend suggests that Lumentum Holdings Inc has become more efficient in managing its working capital over the years, which could be attributed to improved inventory management, better receivables collection, or effective payables management. This indicates a positive sign for the company's operational efficiency and overall financial performance.
Peer comparison
Jun 30, 2024