Sonos Inc (SONO)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,520,930 | 1,661,860 | 1,741,010 | 1,716,560 | 1,324,680 |
| Total current assets | US$ in thousands | 551,086 | 659,631 | 867,391 | 957,514 | 660,377 |
| Total current liabilities | US$ in thousands | 366,153 | 354,218 | 535,639 | 476,130 | 393,015 |
| Working capital turnover | 8.22 | 5.44 | 5.25 | 3.57 | 4.95 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,520,930K ÷ ($551,086K – $366,153K)
= 8.22
The working capital turnover ratio for Sonos Inc has shown a consistent upward trend over the past five years, indicating an improvement in the company's efficiency in managing its working capital.
The ratio increased from 4.95 in 2020 to 8.22 in 2024, reflecting a substantial enhancement in how effectively the company is utilizing its current assets to generate revenue. This suggests that Sonos Inc has been able to generate sales at a faster pace relative to the level of working capital invested.
A higher working capital turnover ratio is generally considered favorable as it signifies that the company is more efficient in using its working capital to support its operations and sales activities. This improvement may be attributed to better inventory management, collection of receivables, and efficient utilization of payables.
Overall, the increasing trend in Sonos Inc's working capital turnover ratio implies a positive development in the company's operational efficiency and effectiveness in utilizing its resources to drive revenue growth.
Peer comparison
Sep 30, 2024