Teledyne Technologies Incorporated (TDY)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	5,670,000	5,635,500	5,458,600	4,614,300	3,086,200
Total current assets	US$ in thousands	2,944,600	2,981,400	2,817,900	2,429,400	1,722,600
Total current liabilities	US$ in thousands	1,261,600	1,766,100	1,523,400	1,483,700	760,900
Working capital turnover		3.37	4.64	4.22	4.88	3.21

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,670,000K ÷ ($2,944,600K – $1,261,600K)
= 3.37

The working capital turnover for Teledyne Technologies Incorporated has shown fluctuation over the years. In 2020, the ratio was 3.21, indicating that the company generated $3.21 in revenue for every dollar of working capital invested. Over the next few years, the working capital turnover improved significantly, reaching 4.88 in 2021, 4.22 in 2022, and 4.64 in 2023. This suggests that the company became more efficient in utilizing its working capital to generate sales.

However, in 2024, the working capital turnover decreased to 3.37, indicating a potential decrease in efficiency in utilizing working capital to drive revenue generation. It is important for the company to closely monitor its working capital turnover ratio to ensure optimal use of resources in supporting its operations and growth strategies.