Lumentum Holdings Inc (LITE)
Working capital turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,645,000 | 1,472,600 | 1,413,900 | 1,378,500 | 1,359,200 | 1,421,700 | 1,438,600 | 1,577,800 | 1,767,000 | 1,818,300 | 1,830,300 | 1,771,000 | 1,712,600 | 1,682,600 | 1,706,700 | 1,738,800 | 1,742,800 | 1,718,800 | 1,702,100 | 1,681,100 |
| Total current assets | US$ in thousands | 1,717,300 | 1,667,300 | 1,651,400 | 1,636,200 | 1,590,100 | 1,650,000 | 2,062,100 | 2,691,700 | 2,777,900 | 2,463,600 | 2,492,600 | 2,438,400 | 3,139,200 | 3,100,600 | 2,540,100 | 2,423,000 | 2,436,800 | 2,569,800 | 2,266,200 | 2,166,700 |
| Total current liabilities | US$ in thousands | 392,800 | 353,000 | 346,900 | 305,100 | 269,300 | 317,600 | 658,400 | 593,700 | 633,800 | 768,900 | 814,300 | 802,800 | 716,500 | 660,700 | 656,700 | 611,700 | 664,600 | 674,200 | 647,300 | 293,400 |
| Working capital turnover | 1.24 | 1.12 | 1.08 | 1.04 | 1.03 | 1.07 | 1.02 | 0.75 | 0.82 | 1.07 | 1.09 | 1.08 | 0.71 | 0.69 | 0.91 | 0.96 | 0.98 | 0.91 | 1.05 | 0.90 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (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 ratios from September 30, 2020, through June 30, 2025, reveals notable trends in the company's efficiency in managing its working capital relative to revenue generation. Initially, the ratio fluctuated modestly, starting at 0.90 in September 2020, increasing to 1.05 by December 2020, and hovering around 0.90 to 0.98 through the first half of 2021. During this period, the working capital turnover demonstrated a relatively stable pattern, indicating consistent efficiency in utilizing working capital to generate sales.
However, a significant decrease is observed in the quarter ending March 31, 2022, where the ratio declines sharply to 0.69, suggesting a potential decline in operational efficiency or a change in the working capital structure. This dip persists into June 2022 at 0.71, reflecting a potential period of operational adjustment or increased working capital relative to revenue.
From September 2022 onward, the ratio exhibits a recovery trend, rising to 1.08 in September 2022 and stabilizing around 1.09 by December 2022. This improvement indicates enhanced efficiency in working capital management, possibly driven by operational efficiencies or strategic adjustments.
The ratio remains relatively steady through early 2023, with minor fluctuations around 1.07, but shows a decline to 0.82 in June 2023, hinting at a temporary reduction in efficiency. Subsequently, it dips further to 0.75 in September 2023 before rebounding to 1.02 by December 2023. The stabilization and slight uptick in late 2023 and early 2024 suggest a normalization in working capital efficiency.
From March 2024 onward, the ratio gradually increases, reaching 1.12 in March 2025, and then continuing upward to 1.24 in June 2025. This upward trend indicates progressive improvement in the company's ability to generate sales relative to its working capital investments over this period.
Overall, the working capital turnover reflects periods of volatility, with a notable dip in early 2022 followed by recovery and subsequent gradual improvement. The recent upward trend suggests that Lumentum Holdings Inc. has been enhancing its efficiency in managing working capital to support sales growth, especially evident in the latest quarters ending in mid-2025.
Peer comparison
Jun 30, 2025