Qorvo Inc (QRVO)

Working capital turnover

		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	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	3,769,502	3,461,217	3,130,638	3,185,208	3,569,404	4,102,861	4,473,540	4,570,730	4,645,720	4,552,290	4,533,160	4,338,200	4,015,301	3,730,343	3,504,586	3,250,994	3,239,141	3,132,251	3,095,508	3,173,253
Total current assets	US$ in thousands	2,446,030	2,428,370	2,262,880	2,087,780	2,029,790	2,257,700	2,521,280	2,372,490	2,449,860	2,445,850	2,541,270	2,374,080	2,483,800	2,322,260	3,062,730	2,079,330	1,690,500	2,067,670	1,551,810	1,556,830
Total current liabilities	US$ in thousands	1,230,090	1,280,330	671,942	638,976	555,763	613,590	764,127	718,450	675,127	673,427	902,495	703,708	681,581	613,898	1,477,020	509,332	539,003	491,205	449,629	452,146
Working capital turnover		3.10	3.01	1.97	2.20	2.42	2.50	2.55	2.76	2.62	2.57	2.77	2.60	2.23	2.18	2.21	2.07	2.81	1.99	2.81	2.87

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,769,502K ÷ ($2,446,030K – $1,230,090K)
= 3.10

The working capital turnover ratio for Qorvo Inc has shown fluctuations over the past 10 quarters, ranging from 1.97 to 3.10. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is able to generate more sales revenue with the same level of working capital, which is generally favorable.

Between Mar 2020 and Mar 2022, the ratio was relatively stable, ranging between 2.18 and 2.81, suggesting consistent efficiency in utilizing working capital. However, there was a significant increase in the ratio in the Mar 2024 quarter, reaching 3.10, which may indicate an improvement in the company's working capital management efficiency, leading to higher sales generation for each unit of working capital deployed.

On the other hand, the ratio dipped to 1.97 in Sep 2023, which could raise concerns about the company's ability to efficiently utilize its working capital during that period. It is important for Qorvo Inc to monitor its working capital turnover ratio closely to ensure optimal management of its working capital resources for sustained operational efficiency and profitability.