TE Connectivity Ltd (TEL)
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 | 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 | 13,393,000 | 13,602,000 | 13,965,000 |
| Total current assets | US$ in thousands | 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 | 5,554,000 | 5,422,000 | 5,446,000 |
| Total current liabilities | US$ in thousands | 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 | 3,540,000 | 3,694,000 | 3,867,000 |
| Working capital turnover | 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 | 6.65 | 7.87 | 8.84 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,947,000K ÷ ($7,441,000K – $4,011,000K)
= 4.65
TE Connectivity Ltd's working capital turnover has shown fluctuations over the past few years, ranging from a low of 4.65 to a high of 8.84. The working capital turnover ratio measures how efficiently the company is using its working capital to generate revenue.
In recent quarters, the working capital turnover ratio has been relatively stable, ranging from 4.65 to 5.38. A higher ratio indicates that the company is able to efficiently use its current assets and liabilities to support its operations and generate sales.
During the most recent quarter, the working capital turnover ratio was 4.65, indicating that TE Connectivity Ltd generated $4.65 in revenue for every $1 of working capital invested. This suggests that the company's working capital management could be refined to improve efficiency, as the ratio has been trending downwards. The company may want to focus on optimizing its working capital management to enhance its operational performance and overall financial health.
Peer comparison
Dec 31, 2023