Sensata Technologies Holding NV (ST)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,932,760 | 4,054,080 | 4,029,260 | 3,820,810 | 3,045,580 |
| Total current assets | US$ in thousands | 2,027,240 | 2,102,400 | 2,775,040 | 3,076,990 | 2,979,970 |
| Total current liabilities | US$ in thousands | 711,358 | 823,718 | 1,178,970 | 836,259 | 745,157 |
| Working capital turnover | 2.99 | 3.17 | 2.52 | 1.71 | 1.36 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,932,760K ÷ ($2,027,240K – $711,358K)
= 2.99
The working capital turnover of Sensata Technologies Holding NV has shown a positive trend over the past five years. It increased from 1.36 in December 31, 2020, to 1.71 in December 31, 2021, indicating an improvement in the efficiency of utilizing working capital to generate sales.
Further, the ratio saw a significant boost to 2.52 by December 31, 2022, followed by a steady increase to 3.17 by December 31, 2023, and then a slight dip to 2.99 by December 31, 2024. These values suggest that the company has been effectively managing its working capital in recent years, with a notable peak in efficiency in 2023.
Overall, the upward trend in the working capital turnover ratio indicates that Sensata Technologies Holding NV has been able to generate more revenue relative to its investments in working capital, reflecting potential improvements in operational efficiency and effective utilization of resources.
Peer comparison
Dec 31, 2024