Mercury Systems Inc (MRCY)
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 | 912,020 | 887,477 | 884,377 | 858,715 | 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 |
| Total current assets | US$ in thousands | 1,058,180 | 1,019,500 | 990,684 | 954,316 | 953,784 | 951,509 | 983,821 | 954,704 | 937,018 | 937,875 | 896,881 | 878,805 | 814,332 | 755,045 | 708,792 | 661,685 | 643,100 | 626,941 | 645,733 | 676,705 |
| Total current liabilities | US$ in thousands | 300,377 | 296,564 | 273,533 | 232,794 | 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 |
| Working capital turnover | 1.20 | 1.23 | 1.23 | 1.19 | 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 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $912,020K ÷ ($1,058,180K – $300,377K)
= 1.20
The working capital turnover ratio of Mercury Systems Inc. demonstrates notable fluctuations over the analyzed period from September 2020 to June 2025. Initially, the ratio increased from 1.56 in September 2020 to a peak of 1.94 in December 2020 and March 2021, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales during this period.
Subsequently, the ratio experienced a gradual decline, reaching approximately 1.66 by March 2022. This downward trend continued into 2022 and 2023, with the ratio decreasing to around 1.24 in September 2023. The continued decline suggests a decrease in sales efficiency relative to working capital in the later periods, potentially attributable to increased working capital levels, stagnant sales, or operational adjustments.
From the end of 2023 onwards, the ratio stabilized somewhat around 1.18 to 1.23 through March 2025. The relatively steady yet lower ratios in this period reflect a possible plateau in operational efficiency or a strategic shift affecting the turnover rate.
Overall, the trend indicates periods of improvement, peaking in early 2021, followed by a sustained decline through 2022 and 2023, with signs of stabilization in subsequent quarters. These changes may be influenced by shifts in sales performance, inventory management, receivables collection, or broader economic factors impacting the company's operational efficiency.
Peer comparison
Jun 30, 2025