Photronics Inc (PLAB)

Working capital turnover

		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	Oct 31, 2019	Jul 28, 2019	Apr 28, 2019
Revenue (ttm)	US$ in thousands	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	550,660	539,064	537,343
Total current assets	US$ in thousands	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	427,527	420,467	371,968
Total current liabilities	US$ in thousands	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	151,954	159,274	139,284
Working capital turnover		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	2.00	2.06	2.31

January 28, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $907,395K ÷ ($807,677K – $185,289K)
= 1.46

Photronics, Inc.'s working capital turnover has exhibited fluctuating trends over the recent quarters. The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate revenue. A higher ratio indicates better efficiency in converting working capital into sales.

From Q2 2022 to Q2 2023, the ratio remained relatively stable, with values ranging between 1.65 and 1.83. However, in Q3 2023 and Q4 2023, there was a slight decline in efficiency, with the ratio decreasing to 1.50 and 1.49, respectively. This decline suggests a potential inefficiency in the company's working capital management during those periods.

In contrast, there was a noticeable improvement in Q1 2024, where the working capital turnover increased to 1.44. This improvement indicates a better utilization of working capital to generate sales compared to the previous two quarters. It suggests that Photronics, Inc. may have optimized its working capital management practices in Q1 2024, leading to improved efficiency in generating revenue.

Overall, the fluctuating trend in working capital turnover indicates varying levels of efficiency in how Photronics, Inc. managed its working capital to support its operations and sales generation during the analyzed periods. Further analysis of the company's working capital components and operational activities may provide insights into the factors influencing these fluctuations.