Qorvo Inc (QRVO)

Working capital turnover

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 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
Revenue (ttm) US$ in thousands 3,718,972 3,790,486 3,948,029 4,005,009 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
Total current assets US$ in thousands 2,167,280 2,096,860 2,532,460 2,378,190 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
Total current liabilities US$ in thousands 783,182 807,861 1,333,740 1,216,540 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
Working capital turnover 2.69 2.94 3.29 3.45 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

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,718,972K ÷ ($2,167,280K – $783,182K)
= 2.69

The working capital turnover of Qorvo Inc has shown fluctuating trends over the years, indicating varying efficiencies in managing its working capital. The ratio increased consistently from June 30, 2020, to September 30, 2021, reaching its peak at 2.77 on September 30, 2021. This rise suggests that the company was effectively generating revenue relative to its working capital during this period.

However, the ratio started to decline after September 30, 2021, reaching its lowest point at 1.97 on September 30, 2023. This downturn implies a decrease in revenue generation efficiency concerning the company's working capital. There was a notable improvement in the working capital turnover in the following quarters, with the ratio rising to 3.10 on March 31, 2024, and further increasing to 3.45 on June 30, 2024.

Subsequently, the ratio stabilized around the range of 2.50 to 3.00 from September 30, 2024, to March 31, 2025, indicating a moderate level of revenue generation efficiency concerning the working capital during this period.

Overall, Qorvo Inc's working capital turnover ratio has shown fluctuations, signifying changes in how effectively the company is utilizing its working capital to generate revenue. It is essential for the company to closely monitor and manage its working capital efficiently to sustain and improve its operational performance.