Teleflex Incorporated (TFX)

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	2,911,099	2,896,815	2,847,031	2,814,657	2,739,870	2,666,841	2,681,690	2,672,883	2,658,512	2,705,531	2,628,918	2,495,954	2,494,257	2,464,030	2,481,625	2,562,494	2,533,648	2,494,311	2,447,888	2,425,533
Total current assets	US$ in thousands	1,407,410	2,097,270	1,445,800	1,428,050	1,410,980	1,459,380	1,385,340	1,494,200	1,429,120	1,541,840	1,437,230	1,378,780	1,422,420	1,420,560	1,544,620	1,446,790	1,306,330	1,237,610	1,245,140	1,182,610
Total current liabilities	US$ in thousands	606,745	585,422	555,449	575,712	581,492	610,943	610,446	656,200	680,119	562,210	526,848	508,053	540,027	475,247	456,615	402,300	563,055	530,363	493,892	520,916
Working capital turnover		3.64	1.92	3.20	3.30	3.30	3.14	3.46	3.19	3.55	2.76	2.89	2.87	2.83	2.61	2.28	2.45	3.41	3.53	3.26	3.67

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,911,099K ÷ ($1,407,410K – $606,745K)
= 3.64

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.

Analyzing Teleflex Incorporated's working capital turnover over the past eight quarters, we can see fluctuations in the ratio. In Q4 2023, the working capital turnover ratio increased significantly to 3.72 from 1.96 in Q3 2023, which may suggest that the company improved its ability to generate sales from its working capital or managed its working capital more effectively during this period.

Prior to Q4 2023, the ratio also showed variations, ranging from 3.26 to 3.36 in previous quarters of 2023 and maintaining relatively stable levels between 3.29 and 3.62 in 2022. These fluctuations could indicate changes in the company's operational efficiency and effectiveness in managing its working capital during those periods.

Overall, Teleflex Incorporated's working capital turnover ratio has displayed some variability in recent quarters. The company's management should continue monitoring and analyzing the factors influencing working capital turnover to sustain or improve operational efficiency and financial performance in the future.