Seagate Technology PLC (STX)
Working capital turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,540,000 | 8,035,000 | 7,265,000 | 6,551,000 | 6,266,000 | 6,471,000 | 6,803,000 | 7,384,000 | 8,410,000 | 9,352,000 | 10,581,000 | 11,661,000 | 12,046,000 | 11,975,000 | 11,482,000 | 10,681,000 | 10,185,000 | 10,172,000 | 10,245,000 | 10,509,000 |
| Total current assets | US$ in thousands | 3,282,000 | 3,662,000 | 3,608,000 | 3,332,000 | 2,615,000 | 2,628,000 | 2,636,000 | 2,905,000 | 3,597,000 | 3,081,000 | 3,740,000 | 4,033,000 | 4,259,000 | 4,450,000 | 3,668,000 | 3,779,000 | 3,692,000 | 4,081,000 | 3,994,000 | 4,114,000 |
| Total current liabilities | US$ in thousands | 2,412,000 | 2,969,000 | 3,161,000 | 3,099,000 | 3,062,000 | 2,529,000 | 2,473,000 | 2,592,000 | 3,639,000 | 2,725,000 | 3,138,000 | 3,555,000 | 2,881,000 | 2,992,000 | 2,889,000 | 2,921,000 | 2,993,000 | 2,621,000 | 2,644,000 | 2,722,000 |
| Working capital turnover | 9.82 | 11.59 | 16.25 | 28.12 | — | 65.36 | 41.74 | 23.59 | — | 26.27 | 17.58 | 24.40 | 8.74 | 8.21 | 14.74 | 12.45 | 14.57 | 6.97 | 7.59 | 7.55 |
March 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,540,000K ÷ ($3,282,000K – $2,412,000K)
= 9.82
The working capital turnover ratio for Seagate Technology PLC exhibits significant fluctuations over the analyzed period, reflecting changes in the efficiency with which the company utilizes its working capital to generate sales.
From June 30, 2020, to September 30, 2020, the ratio remained relatively stable at approximately 7.55 and 7.59, indicating consistent efficiency levels in managing working capital relative to sales. A noticeable decline is observed by December 31, 2020, when the ratio decreased to 6.97, suggesting a potential reduction in sales efficiency or an increase in working capital.
Between March 31, 2021, and June 30, 2021, the ratio sharply increased to 14.57 and 12.45 respectively, indicating an enhancement in the utilization of working capital to support higher sales. This upward trend peaked notably on September 30, 2021, at 14.74, maintaining a high level into December 2021 at 8.21, which, despite the decrease, remained elevated compared to earlier periods.
In 2022, the ratio demonstrated substantial volatility. It continued to rise, reaching a peak of 26.27 at the end of December 2022, highlighting an increased efficiency in working capital deployment relative to sales. The ratio sustained high levels through March 2022 (8.74), but the most remarkable jump was observed on June 30, 2022, at 24.40. Subsequently, the ratio decreased to 17.58 by September 2022 and further to 16.25 by September 2024, indicating some normalization in working capital efficiency amidst ongoing operational adjustments.
The ratio's most notable escalation occurs on December 31, 2023, reaching 65.36, which signifies a substantial increase in sales efficiency relative to working capital. This spike, followed by a decline to 28.12 on June 30, 2024, and further to 16.25 on September 2024, suggests possible temporary improvements or distortions possibly driven by seasonal variations, strategic changes, or shifts in working capital components.
Finally, the ratio declines again to 11.59 at the end of December 2024 and further to 9.82 by March 31, 2025, indicating a trend toward more normalized or conservative working capital management in recent periods.
Overall, the data reveals periods of heightened efficiency with peaks notably at the end of 2022 and 2023, alongside periods of relative stabilization and normalization. These fluctuations may be attributed to strategic operational changes, seasonal factors, or market conditions impacting working capital and sales dynamics.
Peer comparison
Mar 31, 2025