Sanmina Corporation (SANM)

Working capital turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	8,898,760	7,890,480	6,756,640	6,960,370	8,233,860
Total current assets	US$ in thousands	3,879,570	3,890,620	3,271,400	2,819,440	2,920,930
Total current liabilities	US$ in thousands	2,033,330	2,471,420	1,762,990	1,522,590	1,683,020
Working capital turnover		4.82	5.56	4.48	5.37	6.65

September 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,898,760K ÷ ($3,879,570K – $2,033,330K)
= 4.82

The working capital turnover for Sanmina Corp has shown some fluctuation over the past five years. The ratio decreased from 6.65 in 2019 to 4.45 in 2021, indicating a decrease in the efficiency of utilizing working capital to generate sales. However, there was an improvement in 2022 with a ratio of 5.36 and in 2023 with a ratio of 4.84, suggesting a better utilization of working capital in generating sales. This could be attributed to more effective management of working capital components such as inventory, accounts receivable, and accounts payable. Overall, while there have been fluctuations, there seems to be a trend of improvement in working capital turnover over the past two years, indicating potential efficiency gains in the company's operations.