Materion Corporation (MTRN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,633,630 | 1,735,870 | 1,504,450 | 1,174,500 | 1,182,840 |
| Total current assets | US$ in thousands | 709,382 | 690,448 | 627,252 | 463,999 | 537,747 |
| Total current liabilities | US$ in thousands | 254,995 | 238,964 | 204,509 | 126,884 | 122,440 |
| Working capital turnover | 3.60 | 3.84 | 3.56 | 3.48 | 2.85 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,633,630K ÷ ($709,382K – $254,995K)
= 3.60
The working capital turnover ratio for Materion Corp has been fluctuating over the past five years. The company's ability to efficiently utilize its working capital to generate sales has shown a decreasing trend from 3.21 in 2019 to 3.66 in 2023, with some fluctuations in between. A higher turnover ratio indicates that the company is generating more sales revenue for each dollar of working capital invested.
Although the ratio has decreased slightly in recent years, Materion Corp has maintained a relatively stable level of efficiency in managing its working capital. It is essential for the company to continue monitoring and optimizing its working capital turnover to ensure efficient operations and sustainable growth in the future.