NCR Voyix Corporation (VYX)
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 | 6,589,000 | 7,570,000 | 7,531,000 | 7,566,000 | 7,558,000 | 7,865,000 | 7,767,000 | 7,454,000 | 7,156,000 | 6,536,000 | 6,332,000 | 6,203,000 | 6,207,000 | 6,462,000 | 6,656,000 | 6,882,000 | 6,915,000 | 6,830,000 | 6,597,000 | 6,424,000 |
| Total current assets | US$ in thousands | 1,206,000 | 3,082,000 | 2,949,000 | 3,068,000 | 3,082,000 | 3,191,000 | 3,054,000 | 2,976,000 | 2,876,000 | 2,778,000 | 3,106,000 | 2,612,000 | 2,478,000 | 3,997,000 | 4,136,000 | 3,777,000 | 3,144,000 | 3,156,000 | 3,035,000 | 3,016,000 |
| Total current liabilities | US$ in thousands | 1,333,000 | 2,681,000 | 2,657,000 | 2,816,000 | 2,713,000 | 2,770,000 | 2,833,000 | 2,830,000 | 2,808,000 | 2,734,000 | 2,967,000 | 2,218,000 | 2,088,000 | 2,278,000 | 2,294,000 | 2,406,000 | 2,538,000 | 2,346,000 | 2,303,000 | 2,381,000 |
| Working capital turnover | — | 18.88 | 25.79 | 30.02 | 20.48 | 18.68 | 35.14 | 51.05 | 105.24 | 148.55 | 45.55 | 15.74 | 15.92 | 3.76 | 3.61 | 5.02 | 11.41 | 8.43 | 9.01 | 10.12 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,589,000K ÷ ($1,206,000K – $1,333,000K)
= —
The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company can generate more sales with a lower investment in working capital.
Analyzing the data provided for NCR Voyix Corporation, we observe fluctuations in the working capital turnover ratio over the past few quarters. The ratio has shown volatile movements, ranging from as low as 3.61 to as high as 148.55.
In the most recent quarter, the working capital turnover ratio stands at 18.88, which indicates that for every dollar invested in working capital, the company is generating $18.88 in sales revenue. This suggests a moderate level of efficiency in utilizing its working capital.
Looking at the trend over time, we note a significant increase in the working capital turnover ratio from the beginning of 2021 to mid-2021, peaking at 148.55. This surge may signal a period of heightened efficiency in working capital utilization relative to generating sales. However, this high ratio is followed by a decline in the subsequent quarters, pointing towards a potential decrease in the efficiency of the company's working capital management.
Overall, the analysis of NCR Voyix Corporation's working capital turnover indicates varying levels of efficiency in converting working capital into sales revenue. Further investigation into the underlying factors driving these fluctuations would be necessary to provide a more comprehensive understanding of the company's financial performance.