Teleflex Incorporated (TFX)
Working capital turnover
Dec 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 3,047,324 | 3,025,824 | 3,007,838 | 3,001,406 | 2,974,489 | 2,958,576 | 2,898,975 | 2,860,258 | 2,791,041 | 2,794,959 | 2,808,422 | 2,817,353 | 2,809,563 | 2,758,828 | 2,686,878 | 2,540,439 | 2,537,156 | 2,506,929 | 2,526,947 | 2,612,420 |
Total current assets | US$ in thousands | 1,471,120 | 1,499,300 | 1,438,090 | 1,433,610 | 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 |
Total current liabilities | US$ in thousands | 649,360 | 618,753 | 556,751 | 571,014 | 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 |
Working capital turnover | 3.71 | 3.44 | 3.41 | 3.48 | 3.72 | 1.96 | 3.26 | 3.36 | 3.36 | 3.29 | 3.62 | 3.36 | 3.75 | 2.82 | 2.95 | 2.92 | 2.88 | 2.65 | 2.32 | 2.50 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,047,324K ÷ ($1,471,120K – $649,360K)
= 3.71
Teleflex Incorporated's working capital turnover has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio has exhibited an increasing trend from 2.50 on March 31, 2020, to 3.71 on December 31, 2024, with some variations in between.
The working capital turnover ratio measures how efficiently the company manages its working capital to generate sales. A higher ratio indicates that the company is effectively utilizing its working capital to support sales growth.
Teleflex's working capital turnover ratio reached its peak at 3.75 on December 31, 2021, before slightly decreasing in subsequent periods. The ratio remained above 3 for most of the period, except for a notable decrease to 1.96 on September 30, 2023. This significant drop may indicate issues with managing working capital efficiently during that particular quarter.
Overall, the trend towards higher ratios suggests improvements in working capital management efficiency, which could positively impact Teleflex's overall financial performance and liquidity. Continuing to monitor and analyze the working capital turnover ratio will be essential for assessing the company's operational effectiveness and financial health.
Peer comparison
Dec 31, 2024