PTC Inc (PTC)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	2,299,910	1,970,280	1,874,120	1,753,120	1,384,550
Total current assets	US$ in thousands	1,298,700	1,277,370	1,068,660	1,073,010	833,447
Total current liabilities	US$ in thousands	1,667,190	1,671,180	792,258	779,282	680,760
Working capital turnover		—	—	6.78	5.97	9.07

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,299,910K ÷ ($1,298,700K – $1,667,190K)
= —

The working capital turnover ratio for PTC Inc has shown a decreasing trend over the past three years, dropping from 9.07 in 2020 to 5.97 in 2021 and further declining to 6.78 in 2022. The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales.

A high working capital turnover ratio indicates efficient management of working capital, as the company is generating a significant amount of sales relative to its working capital. Conversely, a decreasing ratio may suggest inefficiencies in managing working capital or a slowdown in sales relative to the level of working capital.

In the case of PTC Inc, the decreasing trend in the working capital turnover ratio may warrant further investigation into the company's working capital management practices and sales performance to identify potential areas of improvement.