Plexus Corp (PLXS)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	7,183,180	7,408,040	7,611,580	7,540,780	8,274,130	7,722,450	7,163,770	6,826,830	6,806,620	6,834,190	6,966,280	6,170,144	5,153,548	4,322,097	3,287,362	4,058,528	4,895,824	5,610,985	5,571,968	4,666,883
Total current assets	US$ in thousands	2,650,230	2,672,220	2,799,290	2,780,270	2,814,300	2,816,120	2,654,420	2,434,970	2,161,480	1,930,890	1,811,740	1,727,340	1,758,350	1,779,160	1,787,790	1,594,730	1,593,390	1,538,290	1,557,700	1,549,460
Total current liabilities	US$ in thousands	1,743,560	1,812,670	1,940,980	1,917,860	1,954,460	2,006,190	1,860,740	1,659,140	1,366,480	1,128,700	1,001,560	919,273	955,456	1,003,520	1,037,620	900,857	889,851	865,503	875,636	844,674
Working capital turnover		7.92	8.62	8.87	8.74	9.62	9.53	9.03	8.80	8.56	8.52	8.60	7.64	6.42	5.57	4.38	5.85	6.96	8.34	8.17	6.62

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,183,180K ÷ ($2,650,230K – $1,743,560K)
= 7.92

Plexus Corp's working capital turnover ratio has fluctuated over the past few years, indicating variations in its efficiency in utilizing its working capital to generate revenue. The working capital turnover ratio measures how effectively a company is using its working capital to support sales.

In the recent quarters, Plexus Corp's working capital turnover has shown a decreasing trend from 9.62 in Q4 2020 to 7.92 in Q4 2023. This downward trend suggests potential challenges in efficiently converting working capital into sales. However, the ratio remains above 7.00, indicating that the company is still effectively managing its working capital to generate revenues.

It is worth noting that Plexus Corp's working capital turnover was relatively stable in the previous years, with some fluctuations within a reasonable range. A higher working capital turnover ratio is generally favorable as it indicates that the company is efficiently using its current assets to drive sales.

Overall, Plexus Corp should continue monitoring its working capital turnover ratio to ensure optimal utilization of working capital and efficient operation of its business activities.