Varex Imaging Corp (VREX)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 797,200 | 840,800 | 856,600 | 879,200 | 894,700 | 913,200 | 893,400 | 876,100 | 864,900 | 860,000 | 855,500 | 845,000 | 823,100 | 745,000 | 708,700 | 708,000 | 738,300 | 769,500 | 796,800 | 794,700 |
| Total current assets | US$ in thousands | 649,900 | 649,300 | 651,900 | 645,700 | 658,300 | 638,500 | 618,400 | 607,300 | 609,900 | 593,400 | 569,200 | 557,900 | 554,200 | 559,800 | 529,800 | 522,600 | 522,000 | 498,900 | 454,000 | 440,200 |
| Total current liabilities | US$ in thousands | 195,900 | 194,600 | 154,100 | 150,100 | 162,800 | 158,600 | 157,200 | 157,400 | 173,100 | 172,300 | 167,100 | 149,900 | 166,600 | 186,200 | 146,300 | 152,500 | 160,600 | 191,900 | 198,100 | 190,900 |
| Working capital turnover | 1.76 | 1.85 | 1.72 | 1.77 | 1.81 | 1.90 | 1.94 | 1.95 | 1.98 | 2.04 | 2.13 | 2.07 | 2.12 | 1.99 | 1.85 | 1.91 | 2.04 | 2.51 | 3.11 | 3.19 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $797,200K ÷ ($649,900K – $195,900K)
= 1.76
The working capital turnover ratio of Varex Imaging Corp has shown some fluctuations over the past few financial periods, ranging from a low of 1.72 to a high of 3.19. This ratio indicates the company's efficiency in generating revenue relative to its working capital. A higher ratio suggests that the company is effectively utilizing its working capital to generate sales.
From the trend observed, the working capital turnover ratio has generally been on a downward trajectory since the end of 2019, where it peaked at 3.19. The ratio has since decreased steadily, reaching a low of 1.72 in March 2024 before recovering slightly to 1.76 in September 2024. This indicates a potential decline in the company's efficiency in utilizing its working capital to drive revenue.
It is worth noting that a single ratio alone cannot provide a complete picture of a company's financial performance, and it is essential to consider other financial ratios and metrics alongside the working capital turnover to gain a comprehensive understanding of Varex Imaging Corp's financial health and operational efficiency.
Peer comparison
Sep 30, 2024