Photronics Inc (PLAB)

Working capital turnover

		Oct 31, 2024	Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020
Revenue (ttm)	US$ in thousands	869,022	894,616	899,226	907,395	894,050	874,282	878,280	850,609	851,526	816,396	771,044	716,233	674,649	638,551	618,137	603,369	609,691	616,661	596,878	585,684
Total current assets	US$ in thousands	931,062	892,640	844,133	807,677	785,450	772,211	720,116	700,816	644,652	678,055	630,345	597,779	550,616	530,464	495,608	506,112	500,139	510,641	472,271	440,904
Total current liabilities	US$ in thousands	183,811	191,126	195,567	185,289	185,223	190,652	185,168	199,331	193,797	197,114	186,471	191,094	176,148	167,617	159,287	145,531	142,939	175,309	153,372	157,654
Working capital turnover		1.16	1.28	1.39	1.46	1.49	1.50	1.64	1.70	1.89	1.70	1.74	1.76	1.80	1.76	1.84	1.67	1.71	1.84	1.87	2.07

October 31, 2024 calculation

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

The working capital turnover ratio for Photronics Inc has shown a fluctuating trend over the past few quarters. It measures how efficiently the company is utilizing its working capital to generate revenue. The working capital turnover ratio indicates how many times the company's working capital is being used to support its sales.

Looking at the data provided, we observe that the working capital turnover ratio has ranged from a low of 1.16 to a high of 2.07. A higher ratio generally indicates that the company is efficiently using its working capital to generate sales. Therefore, an upward trend in this ratio would be considered positive.

In analyzing the trend, we notice that there have been fluctuations in the ratio over time, with some quarters showing increases and others showing declines. This could be due to various factors such as changes in sales volume, inventory management, credit policies, or efficiency in collecting receivables.

Overall, while the working capital turnover ratio has varied, it is important for Photronics Inc to continue monitoring this metric to ensure efficient utilization of its working capital resources and to strive for a more consistent and improving trend over time.