Sonos Inc (SONO)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,661,860 | 1,741,010 | 1,716,560 | 1,324,680 | 1,253,490 |
| Total current assets | US$ in thousands | 659,631 | 867,391 | 957,514 | 660,377 | 679,109 |
| Total current liabilities | US$ in thousands | 354,218 | 535,639 | 476,130 | 393,015 | 402,474 |
| Working capital turnover | 5.44 | 5.25 | 3.57 | 4.95 | 4.53 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,661,860K ÷ ($659,631K – $354,218K)
= 5.44
The working capital turnover for Sonos Inc has shown an increasing trend over the past five years, indicating improvements in the company's efficiency in utilizing its working capital to generate sales. The ratio has increased from 4.56 in 2019 to 5.42 in 2023. This suggests that the company has been able to generate $5.42 in net sales for every $1 of working capital in 2023, up from $4.56 in 2019. This improvement reflects positively on the company's management of its short-term assets and liabilities to support its revenue generation. Overall, the increasing trend in working capital turnover indicates a positive trend in Sonos Inc's working capital management and efficiency in utilizing its resources to drive sales.
Peer comparison
Sep 30, 2023