Varex Imaging Corp (VREX)
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 | 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 | 780,600 | 767,300 | 766,900 |
| Total current assets | US$ in thousands | 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 | 438,400 | 441,400 | 437,300 |
| Total current liabilities | US$ in thousands | 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 | 175,100 | 171,200 | 156,300 |
| Working capital turnover | 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 | 2.96 | 2.84 | 2.73 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $879,200K ÷ ($645,700K – $150,100K)
= 1.77
The working capital turnover ratio for Varex Imaging Corp has shown some fluctuations over the past few years. The ratio has generally been above 1, indicating that the company is efficiently utilizing its working capital to generate sales revenue.
In recent periods, the working capital turnover ratio has ranged from 1.77 to 2.13, indicating a moderate level of efficiency in converting working capital into sales. The highest levels of efficiency were seen in the first quarter of 2020 and the first quarter of 2019, with ratios of 3.11 and 3.19 respectively.
However, there has been some variability in the ratios, with fluctuations seen from quarter to quarter. This suggests that the company's working capital management may not be consistently optimized throughout the year.
Overall, a working capital turnover ratio above 1 indicates that Varex Imaging Corp is effectively managing its working capital to support the generation of sales. However, the company may benefit from focusing on improving the consistency of this efficiency over time.
Peer comparison
Dec 31, 2023