Teleflex Incorporated (TFX)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,047,320 | 2,974,490 | 2,791,040 | 2,809,560 | 2,537,160 |
| Total current assets | US$ in thousands | 1,471,120 | 1,407,410 | 1,410,980 | 1,429,120 | 1,422,420 |
| Total current liabilities | US$ in thousands | 649,360 | 606,745 | 581,492 | 680,119 | 540,027 |
| Working capital turnover | 3.71 | 3.72 | 3.36 | 3.75 | 2.88 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,047,320K ÷ ($1,471,120K – $649,360K)
= 3.71
The working capital turnover of Teleflex Incorporated has shown a positive trend over the past five years. It increased from 2.88 in 2020 to 3.75 in 2021, indicating that the company generated $3.75 in revenue for every $1 of working capital invested.
Although there was a slight decrease to 3.36 in 2022, the metric improved again in 2023 and 2024, reaching 3.72 and 3.71, respectively. This demonstrates that Teleflex has been effectively utilizing its working capital to generate sales revenue, highlighting its efficient management of current assets and liabilities.
Overall, the consistent improvement in the working capital turnover ratio reflects Teleflex's ability to efficiently generate sales from its working capital, which is a positive sign of the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024