Qualys Inc (QLYS)

Working capital turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	554,458	540,737	524,302	506,986	489,723	468,654	448,027	427,836	411,172	396,193	384,328	373,456	362,963	352,826	342,428	332,527	321,607	311,143	300,130	289,354
Total current assets	US$ in thousands	599,998	562,178	508,181	464,748	473,338	522,733	551,740	573,184	546,398	452,853	468,242	464,056	475,345	405,532	448,107	425,138	395,616	379,809	381,586	382,537
Total current liabilities	US$ in thousands	389,208	370,491	369,120	352,958	352,188	334,030	327,389	318,538	304,280	284,692	272,708	259,744	255,730	239,055	235,098	234,235	223,467	213,745	208,713	208,188
Working capital turnover		2.63	2.82	3.77	4.54	4.04	2.48	2.00	1.68	1.70	2.36	1.97	1.83	1.65	2.12	1.61	1.74	1.87	1.87	1.74	1.66

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $554,458K ÷ ($599,998K – $389,208K)
= 2.63

Working capital turnover measures how efficiently a company utilizes its working capital to generate revenue. A higher working capital turnover ratio indicates better efficiency in managing working capital.

Qualys Inc's working capital turnover has shown volatility over the past quarters, ranging from 1.68 to 4.54. The trend indicates an improvement in working capital management efficiency from Q1 2022 to Q4 2023. The significant increase in the ratio from 2.00 in Q2 2022 to 3.77 in Q2 2023 followed by a peak of 4.54 in Q1 2023 suggests a more effective utilization of working capital during those periods.

The latest ratio of 2.63 in Q4 2023, although slightly lower than the previous quarter, is still above the levels seen in the earlier periods. This indicates that Qualys Inc continues to efficiently utilize its working capital to generate revenue, although it has moderated slightly compared to the peak levels observed earlier in the year.

Overall, the upward trend in working capital turnover for Qualys Inc reflects improved efficiency in managing its working capital, which is a positive signal for the company's financial health and operational performance.