TTM Technologies Inc (TTMI)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,422,460	5,009,190	4,431,760	4,364,300	5,294,200
Total current assets	US$ in thousands	1,429,690	1,493,060	1,407,410	1,248,760	1,342,680
Total current liabilities	US$ in thousands	703,984	761,325	558,148	518,046	946,666
Working capital turnover		6.09	6.85	5.22	5.97	13.37

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,422,460K ÷ ($1,429,690K – $703,984K)
= 6.09

TTM Technologies Inc's working capital turnover has fluctuated over the past five years. The company's ability to efficiently utilize its working capital has shown a declining trend from 2019 to 2021, with the ratio decreasing from 13.37 to 5.22. However, there was a slight improvement in 2022 with a ratio of 6.85, but it decreased again in 2023 to 6.09.

A working capital turnover ratio of more than 1 indicates that TTM Technologies Inc is effectively using its working capital to generate sales. A higher ratio reflects the efficiency of the company in converting its working capital into revenue. Despite the fluctuations observed, TTM Technologies Inc's working capital turnover ratios are generally above 1, indicating efficient management of working capital in generating revenue.