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.