Teleflex Incorporated (TFX)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 2,908,220 2,757,200 2,758,900 2,489,840 2,525,140
Total current assets US$ in thousands 1,407,410 1,410,980 1,429,120 1,422,420 1,306,330
Total current liabilities US$ in thousands 606,745 581,492 680,119 540,027 563,055
Working capital turnover 3.63 3.32 3.68 2.82 3.40

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,908,220K ÷ ($1,407,410K – $606,745K)
= 3.63

Teleflex Incorporated's working capital turnover has exhibited fluctuations over the past five years, as indicated by the data provided. In 2023, the working capital turnover ratio increased to 3.72 from 3.36 in 2022, signifying an improvement in the efficiency of managing working capital to generate revenue. This increase suggests that the company is utilizing its working capital more effectively to support its operations.

Comparing the latest ratio to the historical trend, it is evident that Teleflex's working capital turnover has been somewhat volatile, with fluctuations observed in recent years. Despite this variability, the general trend has been positive, with the ratio generally being above 3, signaling that the company has historically been efficient in utilizing its working capital to generate sales.

Overall, the upward trend in working capital turnover indicates an improvement in Teleflex's operational efficiency and effectiveness in managing its working capital to support sales growth. However, it is essential for the company to continue monitoring and optimizing its working capital management to sustain and enhance its efficiency in the future.