TE Connectivity Ltd (TEL)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,845,000 | 15,954,000 | 16,215,000 | 14,867,000 | 12,124,000 |
| Total current assets | US$ in thousands | 7,631,000 | 7,892,000 | 7,268,000 | 7,263,000 | 5,784,000 |
| Total current liabilities | US$ in thousands | 4,746,000 | 4,463,000 | 4,632,000 | 4,656,000 | 3,690,000 |
| Working capital turnover | 5.49 | 4.65 | 6.15 | 5.70 | 5.79 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,845,000K ÷ ($7,631,000K – $4,746,000K)
= 5.49
TE Connectivity Ltd's working capital turnover has exhibited fluctuations over the past five years. The ratio has ranged from a low of 4.65 in September 2023 to a high of 6.15 in September 2022. The working capital turnover indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio generally implies better efficiency in managing working capital.
In the most recent period ending September 30, 2024, TE Connectivity Ltd achieved a working capital turnover of 5.49, reflecting a reasonable level of efficiency in converting working capital into sales. It is slightly lower than the high point in September 2022 but remains above the ratios from the two preceding years, showcasing an overall stable performance in this aspect.
The trend in the working capital turnover ratio suggests that TE Connectivity Ltd has generally managed its working capital effectively over the years, maintaining a balance between liquidity and operational efficiency. Further analysis of the company's financial statements and industry benchmarks can provide additional insights into the factors impacting this ratio and the company's overall financial health.
Peer comparison
Sep 30, 2024