Materion Corporation (MTRN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,648,800 | 1,633,630 | 1,735,870 | 1,504,450 | 1,174,500 |
| Total current assets | US$ in thousands | 724,224 | 709,382 | 690,448 | 627,252 | 463,999 |
| Total current liabilities | US$ in thousands | 226,734 | 254,995 | 238,964 | 204,509 | 126,884 |
| Working capital turnover | 3.31 | 3.60 | 3.84 | 3.56 | 3.48 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,648,800K ÷ ($724,224K – $226,734K)
= 3.31
The working capital turnover for Materion Corporation has shown a generally increasing trend from 3.48 in 2020 to 3.56 in 2021, 3.84 in 2022, peaking at 3.84, then slightly decreasing to 3.60 in 2023, and dropping further to 3.31 in 2024.
This indicates that, on average, Materion Corporation generated $3.56 in revenue for every dollar of working capital invested in 2021, with a slight improvement in efficiency in 2022, before a slight decline in 2023 and a more significant reduction in 2024. However, the levels of working capital turnover are relatively high, suggesting that the company has been efficiently using its working capital to generate sales revenue.
It is important for Materion Corporation to further assess the reasons behind the fluctuations in working capital turnover to maintain or improve its operational efficiency and financial performance in the future.