Sanmina Corporation (SANM)

Working capital turnover

		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	Mar 31, 2020	Dec 31, 2019
Revenue (ttm)	US$ in thousands	7,551,700	7,577,960	7,933,580	8,418,020	8,904,310	9,085,410	8,906,110	8,514,240	7,922,760	7,348,510	6,984,030	6,759,880	6,753,930	6,978,280	6,979,700	6,875,450	6,960,370	6,977,620	7,349,930	7,886,020
Total current assets	US$ in thousands	3,870,430	3,693,340	3,697,480	3,630,260	3,879,570	3,953,020	4,034,960	727,314	3,890,620	3,835,980	3,747,150	3,587,200	3,271,400	3,065,830	2,845,950	2,842,880	2,819,440	3,500,110	3,363,300	2,805,240
Total current liabilities	US$ in thousands	1,940,680	1,821,560	1,847,760	1,822,120	2,033,330	2,157,860	2,254,990	2,570,600	2,471,420	2,462,660	2,298,020	2,096,670	1,762,990	1,587,360	1,418,600	1,473,450	1,522,590	2,213,040	2,131,080	1,530,130
Working capital turnover		3.91	4.05	4.29	4.66	4.82	5.06	5.00	—	5.58	5.35	4.82	4.54	4.48	4.72	4.89	5.02	5.37	5.42	5.96	6.18

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,551,700K ÷ ($3,870,430K – $1,940,680K)
= 3.91

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. A higher ratio indicates that the company is effectively managing its working capital.

Looking at the data provided for Sanmina Corporation, we observe that the working capital turnover has fluctuated over the past few quarters. The ratio ranged from 3.91 to 6.18 over the last eight quarters.

Between Dec 31, 2019, and Mar 31, 2020, the working capital turnover ratio increased from 5.96 to 6.18, showing an improvement in the efficiency of working capital utilization. However, the ratio decreased in the subsequent quarters, reaching a low of 3.91 on Sep 30, 2024.

Overall, the trend over the quarters suggests some variability in the management of working capital efficiency at Sanmina Corporation. It would be important for management to analyze the reasons behind these fluctuations and work towards maintaining a consistent and optimal level of working capital turnover to support sustainable growth and profitability.