MaxLinear Inc (MXL)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 360,528 693,263 1,120,250 892,398 478,596
Total current assets US$ in thousands 323,442 488,025 563,124 404,104 361,718
Total current liabilities US$ in thousands 182,284 222,129 341,086 207,395 233,661
Working capital turnover 2.55 2.61 5.05 4.54 3.74

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $360,528K ÷ ($323,442K – $182,284K)
= 2.55

The working capital turnover ratio for MaxLinear Inc has exhibited fluctuations over the past five years. In December 31, 2020, the ratio stood at 3.74 and increased steadily to 4.54 by December 31, 2021, demonstrating an improvement in the company's efficiency in utilizing its working capital to generate sales. Subsequently, the ratio continued to rise to 5.05 by December 31, 2022, indicating a further enhancement in working capital management.

However, the trend reversed in the following years, with the ratio decreasing to 2.61 by December 31, 2023, and further declining to 2.55 by December 31, 2024. This decline suggests a potential slowdown in MaxLinear's ability to convert working capital into revenue efficiently, which may warrant a closer examination of the company's working capital management practices and operational efficiency.