Semtech Corporation (SMTC)

Working capital turnover

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Revenue	US$ in thousands	909,287	868,758	772,240	756,533	763,171
Total current assets	US$ in thousands	585,461	534,197	534,197	722,786	722,786
Total current liabilities	US$ in thousands	283,034	217,156	217,156	396,855	396,855
Working capital turnover		3.01	2.74	2.44	2.32	2.34

January 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $909,287K ÷ ($585,461K – $283,034K)
= 3.01

The working capital turnover for Semtech Corporation has shown a positive trend over the past few years, increasing from 2.34 in January 29, 2023, to 3.01 in January 31, 2025. This indicates that the company is efficiently utilizing its working capital to generate sales revenue. A higher working capital turnover ratio reflects that Semtech is effectively managing its working capital, which comprises current assets and current liabilities. The increase in the working capital turnover ratio suggests that the company is able to generate more sales revenue per dollar of working capital, highlighting its operational efficiency in managing its short-term assets and liabilities. Overall, the improving trend in working capital turnover indicates a positive aspect of Semtech's financial performance.