Vishay Intertechnology Inc (VSH)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,402,040 | 3,497,400 | 3,240,490 | 2,501,900 | 2,668,300 |
| Total current assets | US$ in thousands | 2,297,160 | 2,121,210 | 2,010,500 | 1,697,340 | 1,704,120 |
| Total current liabilities | US$ in thousands | 691,875 | 726,258 | 693,667 | 562,423 | 520,428 |
| Working capital turnover | 2.12 | 2.51 | 2.46 | 2.20 | 2.25 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,402,040K ÷ ($2,297,160K – $691,875K)
= 2.12
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Vishay Intertechnology's working capital turnover has shown some fluctuations over the past five years. In 2023, the ratio decreased to 2.12 from 2.51 in 2022, indicating a slight decrease in efficiency in utilizing working capital to generate sales revenue. However, it is still relatively high compared to previous years.
In 2021 and 2019, the company achieved working capital turnover ratios of 2.46 and 2.25, respectively, showing a similar level of efficiency in utilizing working capital to generate sales revenue. In 2020, the ratio was slightly lower at 2.20, but still within a relatively consistent range.
Overall, Vishay Intertechnology has maintained a moderate to high level of efficiency in managing its working capital to generate sales revenue over the past five years, with the ratio mostly ranging between 2.12 and 2.51. These results suggest a stable and efficient working capital management strategy within the company.
Peer comparison
Dec 31, 2023