SanDisk Corp (SNDK)
Working capital turnover
| Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,598,370 | 5,564,870 | 5,756,970 | 6,051,180 | 6,447,990 | 6,627,690 | 6,620,300 | 6,498,960 | 6,341,210 | 6,170,000 | 5,983,640 | 5,631,680 | 5,187,680 | 5,052,510 | 5,087,930 | 5,230,770 | 5,573,500 | 5,662,140 | 5,412,620 | 5,230,260 |
| Total current assets | US$ in thousands | 6,153,380 | 5,659,790 | 3,613,650 | 3,657,360 | 3,752,990 | 4,200,120 | 4,354,130 | 4,614,710 | 4,508,020 | 4,650,720 | 3,947,900 | 4,294,880 | 4,850,860 | 4,355,960 | 4,318,630 | 4,136,880 | 4,084,550 | 4,032,690 | 3,972,800 | 3,907,480 |
| Total current liabilities | US$ in thousands | 3,692,610 | 2,003,480 | 1,139,010 | 2,037,060 | 2,090,680 | 2,190,880 | 2,214,950 | 1,956,780 | 1,878,400 | 1,230,580 | 1,192,650 | 1,107,980 | 1,873,090 | 1,881,670 | 1,896,910 | 1,824,400 | 904,131 | 960,107 | 1,142,380 | 1,026,700 |
| Working capital turnover | 2.28 | 1.52 | 2.33 | 3.73 | 3.88 | 3.30 | 3.09 | 2.45 | 2.41 | 1.80 | 2.17 | 1.77 | 1.74 | 2.04 | 2.10 | 2.26 | 1.75 | 1.84 | 1.91 | 1.82 |
March 31, 2016 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,598,370K ÷ ($6,153,380K – $3,692,610K)
= 2.28
The working capital turnover ratio of SanDisk Corp has shown variability over the analyzed period. The ratio measures how efficiently the company is using its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.
From the data provided, we can see that the working capital turnover ratio fluctuated between 1.52 to 3.88 from December 31, 2015, to March 31, 2015. The ratio was relatively low at 1.52 by the end of December 2015, indicating that the company may not have efficiently utilized its working capital to generate revenue during that period.
However, the ratio significantly improved to 3.88 by the end of March 31, 2015, reflecting a notable enhancement in the efficiency of using working capital to generate sales.
Overall, the working capital turnover ratio of SanDisk Corp has displayed significant fluctuations, suggesting varying efficiency in utilizing working capital to generate revenue throughout the analyzed period. It is important for the company to closely monitor and manage its working capital to ensure optimal performance and profitability.