Vicor Corporation (VICR)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 370,896 | 413,907 | 400,531 | 719,112 | 594,138 |
| Total current assets | US$ in thousands | 463,034 | 420,366 | 362,604 | 356,760 | 316,932 |
| Total current liabilities | US$ in thousands | 61,820 | 44,169 | 64,549 | 49,093 | 40,513 |
| Working capital turnover | 0.92 | 1.10 | 1.34 | 2.34 | 2.15 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $370,896K ÷ ($463,034K – $61,820K)
= 0.92
The working capital turnover for Vicor Corporation has shown some fluctuations over the years. In December 31, 2020, the working capital turnover stood at 2.15, indicating that the company generated $2.15 in revenue for every dollar of working capital invested.
The ratio increased to 2.34 by December 31, 2021, suggesting improved efficiency in managing working capital during that year. However, there was a notable decline in efficiency by December 31, 2022, with the turnover dropping to 1.34.
The trend continued with a further decrease to 1.10 by December 31, 2023, signaling a potential challenge in utilizing working capital effectively to generate sales during that period.
By December 31, 2024, the working capital turnover fell even further to 0.92, indicating a significant drop in revenue generated for each dollar of working capital invested.
Overall, the varying trend in working capital turnover suggests some inconsistency in Vicor Corporation's ability to efficiently convert working capital into sales over the years. Further analysis and investigation may be needed to identify the underlying reasons for these fluctuations and to implement strategies for improving working capital management efficiency.
Peer comparison
Dec 31, 2024