Teledyne Technologies Incorporated (TDY)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,559,800	5,379,900	4,510,100	3,094,300	3,171,900
Total current assets	US$ in thousands	2,981,400	2,817,900	2,429,400	1,722,600	1,313,700
Total current liabilities	US$ in thousands	1,766,100	1,523,400	1,498,400	760,900	763,200
Working capital turnover		4.57	4.16	4.84	3.22	5.76

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,559,800K ÷ ($2,981,400K – $1,766,100K)
= 4.57

Teledyne Technologies Inc's working capital turnover has displayed fluctuations over the past five years, ranging from a low of 3.21 in January 3, 2021, to a high of 5.75 in December 29, 2019. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate revenue.

The increase in the working capital turnover ratio from 3.21 in January 3, 2021, to 4.64 in December 31, 2023, suggests an improvement in the efficiency of Teledyne Technologies Inc in utilizing its working capital to generate sales. This increase could be a result of effective management of current assets and liabilities, leading to a more efficient use of resources to drive revenue growth.

Overall, the upward trend in the working capital turnover ratio over the five-year period indicates a positive performance in terms of working capital management at Teledyne Technologies Inc. It is essential for the company to continue optimizing its working capital utilization to sustain and potentially enhance its operational efficiency in generating revenue.