Sanmina Corporation (SANM)

Working capital turnover

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Revenue US$ in thousands 7,568,330 8,898,760 7,890,480 6,756,640 6,960,370
Total current assets US$ in thousands 3,870,430 3,879,570 3,890,620 3,271,400 2,819,440
Total current liabilities US$ in thousands 1,940,680 2,033,330 2,471,420 1,762,990 1,522,590
Working capital turnover 3.92 4.82 5.56 4.48 5.37

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,568,330K ÷ ($3,870,430K – $1,940,680K)
= 3.92

Sanmina Corporation's working capital turnover has exhibited fluctuations over the past five years. The ratio has decreased from 5.37 in 2020 to 3.92 in 2024, indicating a decline in the efficiency of utilizing working capital to generate revenue. This downward trend may suggest inefficiencies in managing current assets and liabilities.

Moreover, there was a significant drop in the working capital turnover from 2022 to 2023, from 5.56 to 4.82, which could signify a temporary slowdown in the company's ability to convert working capital into sales. However, the ratio rebounded in 2023 and 2024 but remained below the levels seen in 2022.

Overall, the varying levels of working capital turnover imply fluctuations in the company's ability to efficiently utilize its working capital to generate sales revenue across the years under consideration. Further analysis of the company's working capital management practices and operational efficiency may provide insights into the factors driving these fluctuations.