Sanmina Corporation (SANM)

Working capital turnover

		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	Mar 31, 2019
Revenue (ttm)	US$ in thousands	8,427,300	8,913,590	9,094,690	8,915,390	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	8,233,870	8,218,000	8,004,370
Total current assets	US$ in thousands	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	2,920,930	3,001,640	3,175,090
Total current liabilities	US$ in thousands	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	1,683,020	1,827,670	2,418,530
Working capital turnover		4.66	4.83	5.07	5.01	—	5.58	5.35	4.82	4.54	4.48	4.72	4.89	5.02	5.37	5.42	5.96	6.18	6.65	7.00	10.58

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,427,300K ÷ ($3,630,260K – $1,822,120K)
= 4.66

The working capital turnover ratio of Sanmina Corporation has displayed fluctuating trends over the past few quarters, indicating variability in the efficiency of utilizing its working capital to generate sales.

The company's working capital turnover ratio increased steadily from March 2020 to December 2020, reaching a peak of 10.58. This implies that for every dollar of working capital invested, Sanmina Corporation generated $10.58 in sales during that period, reflecting high operational efficiency.

However, from December 2020 to September 2022, the working capital turnover ratio witnessed a declining trend, suggesting a potential inefficiency in the management of working capital relative to sales generation. The ratio hit a low point in March 2022 at 4.48, indicating that for each dollar of working capital, the company only generated $4.48 in sales.

From September 2022 onwards, there was a slight improvement in the working capital turnover ratio, with the number fluctuating within a relatively narrow range of 4.54 to 5.58. This indicates a partial recovery in the efficiency of working capital utilization.

Overall, Sanmina Corporation's working capital turnover ratio has shown mixed results, with periods of both high and low efficiency. Further monitoring and analysis of the trend in this ratio will be crucial to evaluate the company's ability to optimize its working capital management for sustained operational performance.