TE Connectivity Ltd (TEL)
Working capital turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,808,000 | 15,756,000 | 15,755,000 | 15,947,000 | 15,954,000 | 16,279,000 | 16,380,000 | 16,229,000 | 16,215,000 | 15,678,000 | 15,430,000 | 15,166,000 | 14,867,000 | 14,324,000 | 13,028,000 | 12,487,000 | 12,136,000 | 12,175,000 | 13,016,000 | 13,229,000 |
| Total current assets | US$ in thousands | 7,631,000 | 7,713,000 | 7,504,000 | 7,441,000 | 7,892,000 | 7,649,000 | 7,439,000 | 7,318,000 | 7,268,000 | 7,583,000 | 7,417,000 | 7,244,000 | 7,263,000 | 7,394,000 | 7,422,000 | 6,481,000 | 5,784,000 | 5,319,000 | 5,715,000 | 5,566,000 |
| Total current liabilities | US$ in thousands | 4,746,000 | 5,117,000 | 5,163,000 | 4,011,000 | 4,463,000 | 4,258,000 | 4,393,000 | 4,420,000 | 4,632,000 | 5,058,000 | 5,046,000 | 4,274,000 | 4,656,000 | 4,662,000 | 5,039,000 | 4,083,000 | 3,690,000 | 3,727,000 | 3,959,000 | 3,404,000 |
| Working capital turnover | 5.48 | 6.07 | 6.73 | 4.65 | 4.65 | 4.80 | 5.38 | 5.60 | 6.15 | 6.21 | 6.51 | 5.11 | 5.70 | 5.24 | 5.47 | 5.21 | 5.80 | 7.65 | 7.41 | 6.12 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,808,000K ÷ ($7,631,000K – $4,746,000K)
= 5.48
TE Connectivity Ltd's working capital turnover has shown some fluctuation over the past several quarters, ranging from a low of 4.65 to a high of 7.65. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
In the most recent quarter, the working capital turnover ratio stood at 5.48, which suggests that the company generated $5.48 in sales for every dollar of working capital invested. This ratio has been generally stable over the past five quarters, indicating a consistent level of efficiency in the company's working capital management.
However, it is also important to note that there was a significant increase in the working capital turnover ratio in some quarters, such as Jun 30, 2020, and Sep 30, 2022, which could indicate either improved efficiency in working capital management or changes in business operations that impacted the ratio.
Overall, TE Connectivity Ltd has maintained a relatively healthy working capital turnover ratio, indicating that the company is effectively utilizing its working capital to support its sales activities.
Peer comparison
Sep 30, 2024