NXP Semiconductors NV (NXPI)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,276,000 | 13,205,000 | 11,063,000 | 8,612,000 | 8,877,000 |
| Total current assets | US$ in thousands | 7,864,000 | 6,935,000 | 5,228,000 | 4,324,000 | 3,267,000 |
| Total current liabilities | US$ in thousands | 4,111,000 | 3,270,000 | 2,452,000 | 2,017,000 | 1,791,000 |
| Working capital turnover | 3.54 | 3.60 | 3.99 | 3.73 | 6.01 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $13,276,000K ÷ ($7,864,000K – $4,111,000K)
= 3.54
The working capital turnover of NXP Semiconductors NV has shown a decreasing trend over the past five years, starting at a high of 6.01 in 2019 and gradually declining to 3.54 in 2023. This indicates that the company's efficiency in utilizing its working capital to generate sales has weakened over time. A working capital turnover below 1 could signify inefficiency in managing working capital, while a higher ratio indicates better utilization. The downward trend observed in NXP Semiconductors NV's working capital turnover may suggest inefficiencies in working capital management or changes in the company's operating environment affecting its working capital efficiency. Additional analysis and investigation are recommended to understand the underlying reasons for this trend and to implement appropriate measures to improve working capital management efficiency.
Peer comparison
Dec 31, 2023