MACOM Technology Solutions Holdings Inc (MTSI)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	729,578	648,407	675,170	606,920	530,037
Total current assets	US$ in thousands	903,078	761,193	813,083	521,536	481,519
Total current liabilities	US$ in thousands	108,184	83,525	97,214	93,044	94,950
Working capital turnover		0.92	0.96	0.94	1.42	1.37

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $729,578K ÷ ($903,078K – $108,184K)
= 0.92

The working capital turnover of MACOM Technology Solutions Holdings Inc has shown a decreasing trend over the past five years. In fiscal year 2021, the company achieved a working capital turnover of 1.42, indicating that it generated $1.42 in net sales for every $1 of working capital invested. However, this ratio decreased to 1.37 in fiscal year 2020 and continued to decline to 0.94 in 2022, 0.96 in 2023, and finally to 0.92 in 2024.

A decreasing working capital turnover ratio may suggest inefficiencies in managing the company's working capital, which includes current assets and current liabilities. This could indicate that the company is not effectively utilizing its working capital to generate sales, which may lead to liquidity issues or operational inefficiencies.

It is important for MACOM Technology Solutions Holdings Inc to monitor and improve its working capital turnover to ensure optimal utilization of its resources and improve its overall financial performance. Further analysis and comparison with industry standards may provide additional insights into the company's operational efficiency and financial health.