PTC Inc (PTC)

Working capital turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,232,988	2,118,576	2,106,443	2,036,814	1,972,671	1,913,566	1,856,952	1,849,196	1,844,311	1,850,753	1,824,465	1,780,355	1,753,119	1,670,686	1,580,139	1,458,146	1,384,554	1,327,312	1,278,925	1,229,995
Total current assets	US$ in thousands	1,298,700	1,091,770	1,152,810	1,134,410	1,277,370	1,103,280	1,166,410	1,126,790	1,068,660	948,432	966,962	1,009,320	1,073,010	918,496	901,763	936,204	833,447	847,238	1,341,430	739,169
Total current liabilities	US$ in thousands	1,667,190	1,569,250	1,515,020	950,333	1,671,180	1,611,660	1,593,050	786,742	792,258	769,671	782,381	779,978	779,282	746,199	766,820	712,238	680,760	666,291	1,192,170	631,512
Working capital turnover		—	—	—	11.07	—	—	—	5.44	6.67	10.35	9.88	7.76	5.97	9.70	11.71	6.51	9.07	7.34	8.57	11.43

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,232,988K ÷ ($1,298,700K – $1,667,190K)
= —

The working capital turnover ratio for PTC Inc has fluctuated over the past several quarters. In the most recent quarter, ending on December 31, 2023, the working capital turnover ratio stood at 11.07, indicating that the company generated 11.07 units of revenue for each unit of working capital invested. This signifies efficient utilization of working capital to generate sales.

Comparing the ratio to previous quarters, we can observe variability in the efficiency of working capital management. The trend shows an improvement in working capital turnover from the end of 2022 to the end of 2023, suggesting that PTC Inc has been able to more effectively leverage its working capital resources to drive sales growth.

However, it is important to note that working capital turnover ratios below the most recent quarter, such as the ratios in the range of 5.44 to 9.70, indicate a lower level of efficiency in working capital management during those periods. This may imply potential issues such as excess inventory, slow collection of receivables, or inadequate management of payables.

Overall, the upward trend in the working capital turnover ratio suggests an improving efficiency in utilizing working capital to generate revenue for PTC Inc. Further analysis of the components of working capital, such as accounts receivable, inventory, and accounts payable, could provide insights into areas for further optimization to enhance the company's overall financial performance.