MACOM Technology Solutions Holdings Inc (MTSI)

Working capital turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Revenue (ttm)	US$ in thousands	729,578	679,243	637,279	625,451	648,407	676,175	699,912	695,653	675,169	652,237	632,600	618,036	606,920	598,958	583,603	559,444	530,037	495,036	466,075	468,116
Total current assets	US$ in thousands	903,078	843,612	798,438	744,951	761,193	852,051	848,316	847,633	813,083	765,505	706,436	671,564	521,536	476,335	432,633	509,215	481,519	450,268	417,983	410,634
Total current liabilities	US$ in thousands	108,184	103,089	108,853	102,869	83,525	210,637	91,249	93,784	97,214	101,433	94,323	97,191	93,044	87,104	88,573	98,156	94,950	95,017	92,964	94,639
Working capital turnover		0.92	0.92	0.92	0.97	0.96	1.05	0.92	0.92	0.94	0.98	1.03	1.08	1.42	1.54	1.70	1.36	1.37	1.39	1.43	1.48

September 30, 2024 calculation

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

MACOM Technology Solutions Holdings Inc's working capital turnover has shown fluctuations over the past several quarters. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. A higher ratio generally indicates more efficient utilization of working capital.

From December 31, 2019, to March 31, 2020, the working capital turnover ratio increased steadily from 1.36 to 1.70, indicating improved efficiency in utilizing working capital to generate sales. However, from March 31, 2020, to December 31, 2020, the ratio decreased to 1.36, suggesting a slight decline in efficiency.

Subsequently, from December 31, 2020, to September 30, 2021, there was a significant increase in the working capital turnover ratio, reaching 1.42, followed by further improvement to 1.54 and 1.70 in the subsequent quarters. This indicates a positive trend in the company's working capital management efficiency during this period.

However, from December 31, 2021, to September 30, 2022, there was a gradual decline in the ratio from 1.08 to 0.94, indicating a potential decrease in efficiency in utilizing working capital to generate sales. The ratio improved slightly in the following quarters, reaching 0.98.

From September 30, 2022, to September 30, 2024, the working capital turnover ratio remained relatively stable, fluctuating between 0.92 and 0.98. This stability suggests that the company's efficiency in managing working capital to generate sales has been consistent during this period.

Overall, MACOM Technology Solutions Holdings Inc's working capital turnover ratio has displayed mixed performance over the analyzed periods, showing both periods of efficiency improvement and slight declines. Monitoring this ratio over time can provide insights into the company's working capital management effectiveness and operational efficiency.