Semtech Corporation (SMTC)

Working capital turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Revenue (ttm)	US$ in thousands	909,285	851,233	783,447	768,991	735,256	780,680	825,893	861,533	856,675	777,728	741,094	681,058	722,800	764,726	789,257	803,304	782,799	776,380	758,224	752,678
Total current assets	US$ in thousands	585,500	557,786	541,743	539,272	534,197	534,197	572,404	572,404	629,938	629,938	664,399	722,786	722,786	835,232	835,232	577,086	495,423	495,423	502,295	502,295
Total current liabilities	US$ in thousands	283,000	235,491	224,673	224,891	217,156	217,156	238,997	238,997	321,057	321,057	309,756	396,855	396,855	140,093	140,093	140,129	110,416	110,416	128,399	128,399
Working capital turnover		3.01	2.64	2.47	2.45	2.32	2.46	2.48	2.58	2.77	2.52	2.09	2.09	2.22	1.10	1.14	1.84	2.03	2.02	2.03	2.01

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $909,285K ÷ ($585,500K – $283,000K)
= 3.01

Semtech Corporation's working capital turnover has shown fluctuations over the past few years, ranging from a low of 1.10 in October 2022 to a high of 3.01 in January 2025. A higher working capital turnover indicates that the company is efficiently using its working capital to generate sales revenue.

The trend in Semtech's working capital turnover seems to have improved overall, with the ratio generally increasing over time. This suggests that the company has been able to achieve higher sales relative to its working capital base.

However, it's important to note the fluctuations in the ratio, such as the significant drop in July 2022 to 1.84 and the subsequent increase to 2.77 in July 2023. These fluctuations may indicate changes in the efficiency of Semtech's working capital management and sales generation during these periods.

Overall, Semtech Corporation's working capital turnover ratio showcases the company's ability to generate sales relative to its investment in working capital, with an upward trend suggesting improved efficiency in utilizing its resources.