Qualcomm Incorporated (QCOM)

Working capital turnover

		Sep 30, 2024	Jun 23, 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	38,961,000	37,348,000	36,406,000	36,292,000	35,820,000	38,584,000	41,069,000	42,958,000	44,200,000	42,141,000	39,265,000	36,036,000	33,566,000	32,576,000	29,409,000	26,690,000	23,532,000	20,000,000	24,742,000	24,508,000
Total current assets	US$ in thousands	25,231,000	23,332,000	24,232,000	23,439,000	22,464,000	20,476,000	19,073,000	21,098,000	20,724,000	18,999,000	21,610,000	20,222,000	20,075,000	19,693,000	18,299,000	19,792,000	18,519,000	15,558,000	15,313,000	16,205,000
Total current liabilities	US$ in thousands	10,504,000	9,747,000	9,143,000	9,169,000	9,628,000	8,463,000	7,866,000	10,081,000	11,866,000	11,829,000	13,432,000	12,273,000	11,951,000	11,460,000	9,070,000	9,223,000	8,672,000	7,914,000	9,774,000	9,194,000
Working capital turnover		2.65	2.75	2.41	2.54	2.79	3.21	3.66	3.90	4.99	5.88	4.80	4.53	4.13	3.96	3.19	2.53	2.39	2.62	4.47	3.50

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $38,961,000K ÷ ($25,231,000K – $10,504,000K)
= 2.65

The working capital turnover ratio for Qualcomm Incorporated has displayed fluctuations over the periods presented. Generally, a higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue.

From the data provided, we observe that the working capital turnover ratio has ranged from 2.39 to 5.88. The ratio peaked at 5.88 in the quarter ending June 30, 2022, suggesting that Qualcomm was effectively utilizing its working capital to generate sales during that period. However, it decreased in subsequent quarters before showing some fluctuations.

The ratio then experienced a significant decline in the quarter ending March 31, 2023, dropping to 2.41, indicating a potential inefficiency in working capital management during that period. However, it gradually increased in the following quarters, reaching 3.66 by the quarter ending March 31, 2023.

The working capital turnover ratio continued to rise, reaching another peak of 5.88 in the quarter ending June 30, 2022. This significant improvement suggests that Qualcomm was achieving higher sales relative to its working capital investment during this period.

Overall, analyzing the trend of Qualcomm's working capital turnover ratio provides insights into the company's operational efficiency and the effectiveness of managing its current assets and liabilities to support sales generation.