Teledyne Technologies Incorporated (TDY)

Working capital turnover

		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	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	5,580,800	5,567,100	5,524,600	5,464,500	5,379,900	5,336,400	5,282,900	5,038,800	4,510,100	3,987,200	3,444,000	3,083,800	3,094,300	3,099,200	3,151,000	3,188,000	3,147,300	3,061,500	2,984,100	2,940,000
Total current assets	US$ in thousands	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	1,313,700	1,238,100	1,161,000	1,117,500
Total current liabilities	US$ in thousands	1,766,100	1,682,100	1,633,500	1,488,000	1,523,400	1,418,500	1,403,000	1,408,300	1,498,400	1,421,800	1,053,300	652,400	760,900	671,200	752,200	759,600	763,200	835,500	711,000	723,700
Working capital turnover		4.59	4.89	5.49	3.92	4.16	4.85	5.65	5.42	4.84	3.58	2.16	0.85	3.22	3.59	4.31	5.28	5.72	7.60	6.63	7.47

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,580,800K ÷ ($2,981,400K – $1,766,100K)
= 4.59

Teledyne Technologies Inc's working capital turnover has shown fluctuations over the past eight quarters, ranging from a low of 3.96 in Q1 2023 to a high of 5.74 in Q2 2022. The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher ratio indicates a more efficient use of working capital.

Overall, the trend indicates that Teledyne Technologies Inc has generally been efficient in managing its working capital to generate sales, with the ratio ranging between 4.22 and 5.74. However, the drop in the ratio to 3.96 in Q1 2023 suggests that there may have been some inefficiencies in managing working capital during that quarter.

It is important for the company to maintain a balance between having enough working capital to support its operations and ensuring that this capital is effectively utilized to generate sales. Further analysis would be needed to understand the specific factors driving the fluctuations in the working capital turnover ratio and to identify any areas for improvement in the management of working capital.