MaxLinear Inc (MXL)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	693,263	1,120,250	892,398	478,596	317,180
Total current assets	US$ in thousands	488,025	563,124	404,104	361,718	181,770
Total current liabilities	US$ in thousands	222,129	341,086	207,395	233,661	66,562
Working capital turnover		2.61	5.05	4.54	3.74	2.75

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $693,263K ÷ ($488,025K – $222,129K)
= 2.61

The working capital turnover of MaxLinear Inc has shown fluctuations over the past five years. The ratio indicates how efficiently the company is using its working capital to generate revenue. A higher working capital turnover ratio is generally favorable as it suggests that the company is effectively utilizing its current assets to support its sales.

In 2023, the working capital turnover ratio decreased to 2.61 from 5.05 in 2022. This dip may indicate that the company's efficiency in utilizing its working capital to generate revenue declined during this period. However, it's important to note that the working capital turnover ratio can be influenced by various factors, such as changes in the company's operating cycle and its management of inventory and accounts receivable.

In 2022, there was a significant increase in the working capital turnover ratio compared to the previous year, suggesting improved efficiency in the utilization of working capital to support sales. The ratio in 2021 remained relatively stable at 4.54, reflecting consistent performance in this regard.

In 2020 and 2019, the working capital turnover ratios were 3.74 and 2.75, respectively. These figures indicate that the company's efficiency in utilizing its working capital to generate revenue improved in 2020 compared to 2019.

Overall, fluctuations in MaxLinear Inc's working capital turnover ratio over the past five years indicate varying levels of efficiency in utilizing working capital to support sales. Further analysis of the company's operational and financial performance would provide additional insights into the factors driving these fluctuations.