Mercury Systems Inc (MRCY)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 835,275 | 973,882 | 988,197 | 923,996 | 796,610 |
| Total current assets | US$ in thousands | 953,784 | 937,018 | 815,252 | 643,100 | 634,769 |
| Total current liabilities | US$ in thousands | 234,416 | 233,264 | 193,927 | 150,823 | 125,915 |
| Working capital turnover | 1.16 | 1.38 | 1.59 | 1.88 | 1.57 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $835,275K ÷ ($953,784K – $234,416K)
= 1.16
The working capital turnover of Mercury Systems Inc has exhibited a declining trend over the past five years. The ratio decreased from 1.57 in 2020 to 1.16 in 2024. This indicates that the company's ability to efficiently utilize its working capital to generate sales revenue has weakened over the period covered.
A working capital turnover of less than 1 suggests that the company may be holding too much working capital relative to its sales volume. This could potentially indicate inefficiencies in managing the company's current assets and liabilities to support its operations.
It is important for Mercury Systems Inc to closely monitor its working capital turnover ratio and take steps to improve efficiency in managing its current assets and liabilities to support its sales activities and overall financial performance.
Peer comparison
Jun 30, 2024