Qualcomm Incorporated (QCOM)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 35,820,000 | 44,200,000 | 33,566,000 | 23,531,000 | 24,273,000 |
| Total current assets | US$ in thousands | 22,464,000 | 20,724,000 | 20,075,000 | 18,519,000 | 16,765,000 |
| Total current liabilities | US$ in thousands | 9,628,000 | 11,866,000 | 11,951,000 | 8,672,000 | 8,935,000 |
| Working capital turnover | 2.79 | 4.99 | 4.13 | 2.39 | 3.10 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $35,820,000K ÷ ($22,464,000K – $9,628,000K)
= 2.79
Qualcomm Incorporated's working capital turnover has fluctuated over the past five years, with a significant decrease from 4.99 in 2022 to 2.79 in 2023. The average turnaround of working capital to support its operations dropped significantly in 2023 compared to the prior year. This could indicate potential inefficiencies in managing its working capital to generate sales. However, historically, the company has maintained a relatively healthy turnover ratio, indicating efficient use of working capital to support revenue generation. It may be prudent for Qualcomm to closely monitor its working capital efficiency and implement strategies to optimize the management of current assets and liabilities to improve its turnover ratio and overall financial health.
Peer comparison
Sep 30, 2023