TechTarget Inc (TTGT)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	246,651	298,349	240,152	148,059	133,266
Total current assets	US$ in thousands	371,473	430,837	438,111	127,763	87,431
Total current liabilities	US$ in thousands	36,990	57,888	70,000	46,418	16,403
Working capital turnover		0.74	0.80	0.65	1.82	1.88

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $246,651K ÷ ($371,473K – $36,990K)
= 0.74

The working capital turnover ratio for Techtarget Inc. has declined steadily over the past five years. In 2019 and 2020, the company had a relatively high working capital turnover of 1.89 and 1.82 respectively, indicating that it was able to generate $1.89 and $1.82 in revenue for every dollar of working capital invested.

However, in the subsequent years, the working capital turnover ratio decreased to 0.72 in 2021, 0.80 in 2022, and further to 0.69 in 2023. This decline suggests that in recent years, Techtarget Inc. has been less efficient in utilizing its working capital to generate revenue. A lower working capital turnover ratio may indicate that the company is carrying excess or inefficiently managed working capital that is not being effectively utilized in its operations.

It is recommended that Techtarget Inc. closely monitor and manage its working capital levels to improve efficiency and productivity in utilizing its resources. Additionally, the company should explore strategies to optimize its working capital turnover to enhance overall financial performance and profitability in the future.