TechTarget Inc (TTGT)

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	246,651	261,716	274,067	290,615	298,349	277,902	270,151	255,484	240,152	231,041	197,824	169,385	148,059	138,065	135,130	134,377	133,265	128,516	125,496	122,291
Total current assets	US$ in thousands	371,473	358,423	391,407	411,841	430,837	449,857	460,369	452,005	438,111	159,310	153,402	136,034	127,763	91,769	82,811	71,283	87,431	81,096	74,478	68,265
Total current liabilities	US$ in thousands	36,990	38,658	39,765	47,402	57,888	59,720	70,373	65,449	70,000	63,264	52,294	46,724	46,418	18,216	19,339	15,354	16,403	14,841	15,346	14,645
Working capital turnover		0.74	0.82	0.78	0.80	0.80	0.71	0.69	0.66	0.65	2.41	1.96	1.90	1.82	1.88	2.13	2.40	1.88	1.94	2.12	2.28

December 31, 2023 calculation

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

The working capital turnover for Techtarget Inc. has shown some fluctuations over the past eight quarters. The ratio has ranged from a low of 0.69 in Q4 2023 to a high of 0.80 in Q4 2022.

A working capital turnover ratio below 1 indicates that the company is not effectively utilizing its working capital to generate sales. The downward trend seen from Q4 2022 to Q4 2023 suggests a potential deterioration in the company's ability to efficiently convert working capital into sales.

Further analysis of the company's working capital management practices and sales efficiency may be warranted to address the declining trend in the working capital turnover ratio. It would be beneficial for management to identify the underlying factors driving this decline and devise strategies to improve working capital efficiency to support future growth and profitability.