EchoStar Corporation (SATS)
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 | 5,482,553 | 1,828,396 | 1,915,143 | 1,933,970 | 2,033,291 | 1,975,606 | 1,957,556 | 2,000,467 | 1,986,148 | 2,024,663 | 1,986,071 | 1,910,995 | 1,819,466 | 1,829,199 | 1,830,681 | 1,927,588 | 2,025,666 | 2,057,321 | 2,131,820 | 2,120,653 |
| Total current assets | US$ in thousands | 4,891,810 | 2,472,940 | 2,396,780 | 2,179,740 | 6,757,710 | 2,041,070 | 1,957,340 | 1,933,000 | 1,926,900 | 1,954,450 | 1,939,080 | 2,697,400 | 2,908,090 | 2,890,030 | 2,827,520 | 2,767,190 | 2,836,210 | 2,934,090 | 2,875,610 | 3,677,640 |
| Total current liabilities | US$ in thousands | 8,018,590 | 396,679 | 398,181 | 378,173 | 6,442,610 | 406,216 | 434,363 | 423,674 | 460,123 | 487,297 | 547,104 | 1,331,780 | 1,425,170 | 1,374,730 | 1,361,910 | 446,217 | 496,019 | 461,741 | 471,662 | 1,346,000 |
| Working capital turnover | — | 0.88 | 0.96 | 1.07 | 6.45 | 1.21 | 1.29 | 1.33 | 1.35 | 1.38 | 1.43 | 1.40 | 1.23 | 1.21 | 1.25 | 0.83 | 0.87 | 0.83 | 0.89 | 0.91 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,482,553K ÷ ($4,891,810K – $8,018,590K)
= —
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A high turnover ratio indicates that the company is efficiently utilizing its resources, while a low ratio suggests inefficiency.
Based on the data provided for EchoStar Corporation, we observe fluctuations in the working capital turnover over the past several quarters. The company's working capital turnover has ranged from a low of 0.83 to a high of 6.45, with the most recent ratio being 0.88 as of September 30, 2023.
The significant variation in the working capital turnover ratio over the periods suggests changes in the company's management of working capital. A spike in the ratio, as seen in December 2022, may indicate an exceptionally efficient use of working capital to drive sales. Conversely, a lower ratio, such as in March 2020, could signal potential inefficiencies in managing working capital.
It is important to note that a single ratio value may not provide a complete picture of the company's financial health. Analyzing trends over time and comparing the ratio to industry benchmarks and competitors can provide additional insight into EchoStar Corporation's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023