Vicor Corporation (VICR)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 413,907 | 400,531 | 719,112 | 594,138 | 526,740 |
| Total current assets | US$ in thousands | 420,366 | 362,604 | 356,760 | 316,932 | 179,066 |
| Total current liabilities | US$ in thousands | 44,169 | 64,549 | 49,093 | 40,513 | 29,930 |
| Working capital turnover | 1.10 | 1.34 | 2.34 | 2.15 | 3.53 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $413,907K ÷ ($420,366K – $44,169K)
= 1.10
The working capital turnover ratio for Vicor Corp. has fluctuated over the past five years, ranging from a low of 1.07 in 2020 to a high of 1.76 in 2019. This ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively utilizing its working capital to generate sales.
In 2023, the working capital turnover ratio decreased to 1.08 from 1.34 in 2022, suggesting a decrease in the efficiency of working capital utilization to generate sales revenue. It is important for the company to investigate the reasons behind this decrease and take corrective actions if necessary to improve efficiency.
Overall, it is essential for Vicor Corp. to closely monitor its working capital turnover ratio and strive to maintain or improve efficiency in utilizing its working capital resources to generate sales, as this can have a significant impact on the company's overall financial performance and profitability.
Peer comparison
Dec 31, 2023