Plexus Corp (PLXS)

Working capital turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	8,496,620	7,722,450	6,834,190	6,875,610	6,448,530
Total current assets	US$ in thousands	2,672,220	2,816,120	1,930,890	1,779,160	1,538,290
Total current liabilities	US$ in thousands	1,812,670	2,006,190	1,128,700	1,003,520	865,503
Working capital turnover		9.88	9.53	8.52	8.86	9.58

September 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,496,620K ÷ ($2,672,220K – $1,812,670K)
= 9.88

The working capital turnover for Plexus Corp. has demonstrated a positive trend over the past five years, indicating an improvement in the company's efficiency in managing its working capital. The ratio has consistently increased from 4.70 in 2019 to 4.90 in 2023. This suggests that the company has been able to generate a higher level of sales revenue relative to its investment in working capital. A rising working capital turnover ratio generally reflects an efficient management of current assets and liabilities, which is a positive signal for the company's financial health and operational efficiency. Overall, the upward trend in the working capital turnover indicates improved effectiveness in utilizing working capital resources to drive sales over the years.