Smart Global Holdings Inc (SGH)

Working capital turnover

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Revenue (ttm)	US$ in thousands	1,233,638	1,360,769	1,552,734	1,598,535	1,700,746	1,758,024	1,764,196	1,888,093	1,862,989	1,718,489	1,559,283	1,371,659	1,193,744	1,160,383	1,134,618	1,092,825	1,123,015	1,259,316	1,354,886	1,462,059
Total current assets	US$ in thousands	884,730	986,848	907,402	938,911	978,170	1,121,910	1,151,860	1,167,570	1,131,720	943,837	950,818	806,245	578,827	558,523	567,106	549,907	532,328	472,260	520,144	621,414
Total current liabilities	US$ in thousands	267,959	368,804	426,250	384,305	420,447	551,807	515,540	524,896	533,804	535,119	583,798	492,218	323,024	282,568	306,260	277,227	299,975	237,900	232,665	324,018
Working capital turnover		2.00	2.20	3.23	2.88	3.05	3.08	2.77	2.94	3.12	4.20	4.25	4.37	4.67	4.20	4.35	4.01	4.83	5.37	4.71	4.92

March 1, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,233,638K ÷ ($884,730K – $267,959K)
= 2.00

The working capital turnover of Smart Global Holdings Inc has shown fluctuating trends over the past few years. The ratio has ranged from 2.00 to 5.37, indicating varying efficiency in utilizing its working capital to generate sales revenue. A higher working capital turnover generally indicates superior efficiency in the management of current assets and liabilities to support revenue generation.

In analyzing this data, it can be observed that there have been periods of improvement in working capital turnover, suggesting better utilization of resources and potentially stronger operational performance. However, there have also been fluctuations in the ratio, indicating possible changes in the company's working capital management practices or external factors impacting its operations.

Overall, the trend of the working capital turnover ratio for Smart Global Holdings Inc reflects a mix of efficiency levels in utilizing working capital to support sales activities. Further analysis and comparison with industry benchmarks or historical performance could provide additional insights into the company's financial health and operational efficiency.