Sensata Technologies Holding NV (ST)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,876,366	3,923,365	3,932,383	3,884,079	3,850,443	3,769,142	3,701,614	3,673,355	3,641,515	3,658,307	3,540,736	3,169,794	3,045,578	2,985,778	3,047,180	3,354,401	3,450,631	3,451,862	3,475,699	3,505,833
Total current assets	US$ in thousands	2,102,400	2,493,160	2,476,630	2,640,200	2,775,040	2,700,200	3,119,730	3,090,100	3,076,990	3,302,660	3,177,130	3,106,120	2,979,970	2,713,880	2,279,160	1,969,550	1,965,650	1,949,590	1,969,580	1,885,070
Total current liabilities	US$ in thousands	823,718	872,673	880,898	1,109,470	1,178,970	905,974	887,129	840,045	836,259	829,820	836,932	773,521	1,495,160	626,415	926,559	621,061	634,746	620,503	629,144	636,296
Working capital turnover		3.03	2.42	2.46	2.54	2.41	2.10	1.66	1.63	1.63	1.48	1.51	1.36	2.05	1.43	2.25	2.49	2.59	2.60	2.59	2.81

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,876,366K ÷ ($2,102,400K – $823,718K)
= 3.03

The working capital turnover ratio of Sensata Technologies Holding Plc has shown a positive trend over the past eight quarters, indicating the company's efficiency in utilizing its working capital to generate revenue. The ratio has steadily improved from 1.71 in Q1 2022 to 3.17 in Q4 2023. This suggests that the company has been able to generate more sales revenue relative to its working capital investment.

The consistent increase in the working capital turnover ratio reflects operational improvements and effective management of the company's current assets and liabilities. It demonstrates that Sensata Technologies has been able to efficiently convert its working capital into sales, which is a positive sign for the company's liquidity and short-term financial health.

Overall, the upward trend in the working capital turnover ratio for Sensata Technologies Holding Plc indicates the company's ability to optimize its working capital management, enhance operational efficiency, and potentially create more value for its shareholders.