Seagate Technology PLC (STX)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,190,000 | 7,384,000 | 11,661,000 | 10,681,000 | 10,509,000 |
| Total current assets | US$ in thousands | 3,332,000 | 2,905,000 | 4,033,000 | 3,779,000 | 4,114,000 |
| Total current liabilities | US$ in thousands | 3,099,000 | 2,592,000 | 3,555,000 | 2,921,000 | 2,722,000 |
| Working capital turnover | 26.57 | 23.59 | 24.40 | 12.45 | 7.55 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,190,000K ÷ ($3,332,000K – $3,099,000K)
= 26.57
Seagate Technology PLC's working capital turnover has shown a consistent improvement over the past five years, increasing from 7.55 in June 30, 2020 to 26.57 in June 30, 2024. This suggests that the company has been effectively utilizing its working capital to generate sales revenue.
The significant increase in working capital turnover indicates that Seagate has been able to efficiently manage its working capital resources during this period. A higher working capital turnover ratio typically reflects a more efficient use of current assets to support sales operations.
Overall, the upward trend in Seagate's working capital turnover ratio reflects positively on the company's ability to manage its working capital efficiently, which is important for sustaining operations and supporting business growth.
Peer comparison
Jun 30, 2024