TE Connectivity Ltd (TEL)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,954,000 | 16,215,000 | 14,867,000 | 12,124,000 | 13,380,000 |
| Total current assets | US$ in thousands | 7,892,000 | 7,268,000 | 7,263,000 | 5,784,000 | 5,554,000 |
| Total current liabilities | US$ in thousands | 4,463,000 | 4,632,000 | 4,656,000 | 3,690,000 | 3,540,000 |
| Working capital turnover | 4.65 | 6.15 | 5.70 | 5.79 | 6.64 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,954,000K ÷ ($7,892,000K – $4,463,000K)
= 4.65
The working capital turnover ratio for TE Connectivity Ltd has shown a declining trend over the past five years. In 2023, the ratio stands at 4.65, down from 6.15 in 2022, indicating that the company's ability to efficiently utilize its working capital to generate sales has decreased. This decline may suggest potential inefficiencies in managing the company's current assets and liabilities. Further analysis is warranted to understand the specific factors driving this trend and to assess the overall operational efficiency of TE Connectivity Ltd.
Peer comparison
Sep 30, 2023