Semtech Corporation (SMTC)

Working capital turnover

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Revenue	US$ in thousands	772,240	763,171	735,908	589,413	538,320
Total current assets	US$ in thousands	534,197	722,786	502,295	474,728	460,736
Total current liabilities	US$ in thousands	217,156	396,855	128,399	109,573	98,641
Working capital turnover		2.44	2.34	1.97	1.61	1.49

January 28, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $772,240K ÷ ($534,197K – $217,156K)
= 2.44

The working capital turnover of Semtech Corporation has shown a positive trend over the past five years, indicating an improvement in the efficiency of the company's working capital management. The ratio has increased steadily from 1.49 in January 2020 to 2.44 in January 2024.

This suggests that Semtech Corporation has been able to generate sales revenue more efficiently relative to its investment in working capital. A higher working capital turnover ratio reflects that the company is effectively utilizing its current assets to support its operations and drive sales.

Overall, the increasing trend in working capital turnover indicates that Semtech Corporation has been successfully optimizing its working capital position, which can lead to improved liquidity, profitability, and financial performance.