Teledyne Technologies Incorporated (TDY)

Working capital turnover

		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	Mar 31, 2020
Revenue (ttm)	US$ in thousands	5,669,300	5,592,000	5,551,000	5,601,600	5,635,500	5,628,700	5,589,800	5,520,900	5,458,600	5,416,100	5,364,400	5,129,600	4,614,300	4,047,900	3,485,000	3,107,300	3,086,200	3,111,100	3,164,300	3,203,000
Total current assets	US$ in thousands	2,944,600	2,990,200	2,744,700	3,223,600	2,981,400	2,820,500	2,640,700	2,882,400	2,817,900	2,519,400	2,337,400	2,337,400	2,429,400	2,534,900	2,650,900	4,280,600	1,722,600	1,535,100	1,483,800	1,363,800
Total current liabilities	US$ in thousands	1,261,600	1,496,400	1,387,000	1,776,800	1,766,100	1,682,100	1,633,500	1,488,000	1,523,400	1,418,500	1,403,000	1,408,300	1,483,700	1,421,800	1,053,300	652,400	760,900	671,200	752,200	759,600
Working capital turnover		3.37	3.74	4.09	3.87	4.64	4.94	5.55	3.96	4.22	4.92	5.74	5.52	4.88	3.64	2.18	0.86	3.21	3.60	4.33	5.30

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,669,300K ÷ ($2,944,600K – $1,261,600K)
= 3.37

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its sales activities.

Over the period from March 31, 2020, to December 31, 2024, Teledyne Technologies Incorporated's working capital turnover ratio fluctuated. The ratio started at a relatively high level of 5.30 on March 31, 2020, reflecting efficient utilization of working capital to generate sales. However, the ratio gradually decreased over the following quarters, reaching a low of 0.86 on March 31, 2021, indicating a less effective management of working capital during that period.

Subsequently, the working capital turnover ratio improved and showed some volatility, with fluctuations noted in the successive quarters. Notably, the ratio increased to a peak of 5.74 on June 30, 2022, and remained relatively high for the next few quarters, indicating a better turnover of working capital to support sales activities.

Towards the end of the period under review, the working capital turnover ratio stabilized around the range of 3.74 to 4.88, suggesting a steady utilization of working capital to generate sales revenue, albeit at varying levels.

Overall, the trend in Teledyne Technologies' working capital turnover ratio indicates fluctuations and variability in the efficiency of its working capital management over the period, with periods of both improvement and decline in the utilization of working capital to support sales activities. Further analysis in conjunction with other financial metrics would provide a more comprehensive assessment of the company's overall financial performance and efficiency.