Qualcomm Incorporated (QCOM)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	38,962,000	35,820,000	44,200,000	33,566,000	23,531,000
Total current assets	US$ in thousands	25,231,000	22,464,000	20,724,000	20,075,000	18,519,000
Total current liabilities	US$ in thousands	10,504,000	9,628,000	11,866,000	11,951,000	8,672,000
Working capital turnover		2.65	2.79	4.99	4.13	2.39

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $38,962,000K ÷ ($25,231,000K – $10,504,000K)
= 2.65

Qualcomm's working capital turnover has fluctuated over the past five years. In 2024, the working capital turnover ratio was 2.65, showing a slight decrease from the previous year's ratio of 2.79. This suggests that the company is generating $2.65 in revenue for every dollar of working capital invested.

Comparing to 2022 and 2021, Qualcomm experienced a significant increase and then a decline in working capital turnover from 4.99 to 4.13, indicating that the efficiency of the company in utilizing its working capital to generate revenue decreased slightly in 2024.

Furthermore, there was a notable improvement in working capital turnover in 2020, with a ratio of 2.39, which increased in the following years. This indicates that Qualcomm has become more efficient in utilizing its working capital to generate revenue over time.

Overall, the fluctuations in Qualcomm's working capital turnover ratios suggest varying levels of efficiency in utilizing working capital to generate revenue in recent years. It is important for the company to monitor and manage its working capital effectively to ensure sustainable operational efficiency and profitability.