Lumentum Holdings Inc (LITE)
Working capital turnover
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,717,600 | 1,391,000 | 1,408,200 | 1,548,200 | 1,739,700 | 1,773,200 | 1,774,200 | 1,706,700 | 1,645,500 | 1,617,600 | 1,645,000 | 1,678,600 | 1,678,000 | 1,654,700 | 1,639,500 | 1,616,400 | 1,617,500 | 1,669,900 | 1,714,900 | 1,648,500 |
| Total current assets | US$ in thousands | 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 | 2,050,000 | 1,963,000 | 1,883,000 | 1,423,200 |
| Total current liabilities | US$ in thousands | 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 | 283,000 | 286,700 | 304,200 | 316,800 |
| Working capital turnover | 2.06 | 1.04 | 1.00 | 0.74 | 0.81 | 1.05 | 1.06 | 1.04 | 0.68 | 0.66 | 0.87 | 0.93 | 0.95 | 0.87 | 1.01 | 0.86 | 0.92 | 1.00 | 1.09 | 1.49 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,717,600K ÷ ($1,590,100K – $269,300K)
= 2.06
The working capital turnover ratio for Lumentum Holdings Inc has exhibited fluctuations over the past eight quarters, indicating variations in the efficiency of the company in utilizing its working capital to generate sales. The ratio has ranged from a low of 0.66 to a high of 2.06 during this period.
In analyzing the trend, we observe that the working capital turnover ratio increased steadily from December 2019 to June 2020, reaching a peak of 1.49. However, it then declined consistently for the following five quarters until March 2022, hitting a low of 0.66, suggesting a potential decrease in efficiency in utilizing working capital during that period.
Subsequently, there was a moderate recovery in the ratio from March 2022 to March 2023, with fluctuations in between, indicating some improvement in the management of working capital. However, the ratio fluctuated around the level of 1.00 for the next few quarters until June 2024, which is comparable to the level seen in December 2023.
Overall, the working capital turnover ratio for Lumentum Holdings Inc has shown variability over the past eight quarters, with periods of both improvement and decline. Further analysis of the company’s working capital management practices and operational efficiency may be necessary to understand the factors driving these fluctuations.
Peer comparison
Jun 30, 2024