Sandisk Corp (SNDK)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,355,000 | 6,663,000 | 6,086,000 | 9,754,000 | 5,564,870 |
| Total current assets | US$ in thousands | 5,086,000 | 3,548,000 | 3,400,000 | 4,489,000 | 5,659,790 |
| Total current liabilities | US$ in thousands | 1,427,000 | 2,123,000 | 2,174,000 | 2,513,000 | 2,003,480 |
| Working capital turnover | 2.01 | 4.68 | 4.96 | 4.94 | 1.52 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,355,000K ÷ ($5,086,000K – $1,427,000K)
= 2.01
The working capital turnover ratio of Sandisk Corp reflects the company's efficiency in utilizing its working capital to generate sales over the specified periods. Initially, at December 31, 2015, the ratio was 1.52, indicating a relatively moderate level of effectiveness in converting working capital into revenue.
By June 30, 2022, this ratio had experienced a significant increase to 4.94, suggesting an improvement in operational efficiency where the company was able to generate more sales per dollar of working capital. This upward trend continued slightly into June 30, 2023, with the ratio marginally rising to 4.96, indicating a sustained or slightly enhanced efficiency in managing working capital relative to sales.
However, in the subsequent period ending June 30, 2024, the ratio decreased to 4.68, signaling a slight decline in the efficiency of working capital utilization. This could imply a marginal decrease in sales relative to working capital or a change in the company's operational practices.
The most notable change occurred between June 30, 2024, and June 30, 2025, where the ratio sharply declined to 2.01. This substantial reduction indicates a significant decrease in efficiency, suggesting the company was generating considerably less sales for each unit of working capital. Such a decline could be associated with changes in sales volume, operational adjustments, or shifts in working capital management practices.
Overall, the trend in Sandisk Corp's working capital turnover ratio demonstrates an initial period of increased efficiency through 2022 and 2023, followed by a decline in subsequent years, culminating in a notably lower ratio in 2025. This pattern warrants further examination into underlying operational, sales, or financial factors that may have contributed to these shifts.
Peer comparison
Jun 30, 2025