Semtech Corporation (SMTC)

Working capital turnover

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Revenue (ttm)	US$ in thousands	772,917	763,303	767,436	779,319	763,414	792,738	810,086	767,944	735,907	709,482	668,860	627,430	589,413	565,090	550,841	542,981	674,392	696,397	904,517	1,096,236
Total current assets	US$ in thousands	534,197	572,404	629,938	664,399	722,786	835,232	577,086	495,423	502,295	496,357	484,849	461,362	474,728	447,746	453,871	432,304	460,736	440,031	453,257	457,047
Total current liabilities	US$ in thousands	217,156	238,997	321,057	309,756	396,855	140,093	140,129	110,416	128,399	123,909	116,366	96,512	109,573	105,873	102,072	91,626	98,641	101,147	110,577	103,330
Working capital turnover		2.44	2.29	2.48	2.20	2.34	1.14	1.85	1.99	1.97	1.90	1.82	1.72	1.61	1.65	1.57	1.59	1.86	2.05	2.64	3.10

January 28, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $772,917K ÷ ($534,197K – $217,156K)
= 2.44

The working capital turnover ratio for Semtech Corporation has fluctuated over the periods in question. A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales revenue.

During the latest available period, the working capital turnover ratio was 2.44, signifying that, on average, Semtech Corporation converted its working capital 2.44 times into sales revenue during the period. This is an improvement compared to the previous period where the ratio stood at 2.29.

Looking at the historical trend, the working capital turnover ratio has exhibited some variability, ranging from a low of 1.14 in October 2022 to a high of 3.10 in April 2019. It is worth noting that a ratio below 1 may indicate inefficiency in working capital management, while a ratio above 1 signifies that the company is effectively utilizing its working capital.

Overall, based on the trend of the working capital turnover ratio, Semtech Corporation has shown mixed performance in efficiently converting its working capital into sales revenue over the periods analyzed.