Seagate Technology PLC (STX)
Working capital turnover
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,190,000 | 6,009,000 | 6,218,000 | 6,761,000 | 7,384,000 | 8,572,000 | 9,529,000 | 10,569,000 | 11,661,000 | 12,023,000 | 11,956,000 | 11,473,000 | 10,681,000 | 10,176,000 | 10,173,000 | 10,250,000 | 10,509,000 | 10,379,000 | 9,968,000 | 9,979,000 |
| Total current assets | US$ in thousands | 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 | 4,015,000 | 4,152,000 | 4,031,000 |
| Total current liabilities | US$ in thousands | 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 | 2,690,000 | 2,700,000 | 2,549,000 |
| Working capital turnover | 26.57 | — | 62.81 | 41.48 | 23.59 | — | 26.77 | 17.56 | 24.40 | 8.72 | 8.20 | 14.73 | 12.45 | 14.56 | 6.97 | 7.59 | 7.55 | 7.83 | 6.87 | 6.73 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 fluctuated over the periods presented in the table, with values ranging from as low as 6.73 to as high as 62.81. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
A higher working capital turnover ratio indicates that the company is effectively using its current assets and liabilities to generate revenue, while a lower ratio may suggest inefficiencies in managing working capital.
In analyzing Seagate's working capital turnover, we observe significant variations between the periods, indicating potential changes in the company's working capital management practices. For example, the spike in the ratio to 62.81 in December 2023 highlights a period of particularly efficient utilization of working capital to generate sales. In contrast, the lower ratios in some periods, such as 6.73 in September 2019, suggest potential inefficiencies or slower turnover of working capital.
Overall, it would be beneficial for Seagate to maintain a consistent focus on optimizing its working capital turnover to ensure efficient utilization of resources and maximize revenue generation. Monitoring and analyzing this ratio over time can provide insights into the company's operational efficiency and liquidity management.
Peer comparison
Jun 30, 2024