Photronics Inc (PLAB)

Working capital turnover

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Revenue	US$ in thousands	869,022	894,116	851,354	674,648	609,090
Total current assets	US$ in thousands	931,062	785,450	644,652	550,616	500,139
Total current liabilities	US$ in thousands	183,811	185,223	193,797	176,148	142,939
Working capital turnover		1.16	1.49	1.89	1.80	1.71

October 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $869,022K ÷ ($931,062K – $183,811K)
= 1.16

The working capital turnover of Photronics Inc has displayed a declining trend over the past five years. The ratio decreased from 1.71 in 2020 to 1.16 in 2024. This indicates that the company is generating less revenue relative to its working capital in the most recent year compared to previous years. A lower working capital turnover may suggest inefficiencies in managing working capital, potentially leading to reduced operational efficiency and profitability. Further investigation into the reasons behind this downward trend is advisable to identify areas for improvement in the company's working capital management strategies.