Mercury Systems Inc (MRCY)
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 | 835,275 | 839,948 | 895,169 | 927,294 | 973,882 | 1,010,375 | 999,971 | 990,763 | 988,197 | 949,310 | 953,092 | 943,388 | 923,996 | 890,531 | 841,690 | 824,927 | 796,610 | 756,196 | 722,816 | 687,992 |
| Total current assets | US$ in thousands | 953,784 | 951,509 | 983,821 | 954,704 | 937,018 | 937,875 | 896,881 | 878,805 | 815,252 | 755,045 | 708,792 | 661,685 | 643,100 | 626,941 | 645,733 | 676,705 | 634,769 | 795,393 | 545,109 | 503,041 |
| Total current liabilities | US$ in thousands | 234,416 | 207,569 | 225,721 | 205,318 | 233,264 | 220,158 | 200,575 | 182,006 | 193,927 | 182,805 | 163,672 | 167,324 | 150,823 | 162,669 | 211,853 | 146,606 | 125,915 | 122,016 | 107,884 | 94,070 |
| Working capital turnover | 1.16 | 1.13 | 1.18 | 1.24 | 1.38 | 1.41 | 1.44 | 1.42 | 1.59 | 1.66 | 1.75 | 1.91 | 1.88 | 1.92 | 1.94 | 1.56 | 1.57 | 1.12 | 1.65 | 1.68 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $835,275K ÷ ($953,784K – $234,416K)
= 1.16
The working capital turnover for Mercury Systems Inc has shown some fluctuation over the past few quarters. The ratio indicates the efficiency of the company in generating sales revenue using its working capital.
The trend shows that the working capital turnover ratio peaked at 1.91 in the third quarter of 2021, indicating the company was able to generate significant sales with its working capital during that period. However, the ratio has generally decreased since then, reaching a low of 1.12 in the third quarter of 2019 before gradually increasing again.
Overall, the working capital turnover ratio for Mercury Systems Inc has been relatively stable in recent quarters, hovering around the range of 1.1 to 1.9. This suggests that the company has been able to effectively manage its working capital to generate sales, although there may be some room for improvement in optimizing the efficiency of its working capital utilization.
Peer comparison
Jun 30, 2024