Waters Corporation (WAT)

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	2,857,555	2,913,395	2,928,280	2,913,876	2,923,159	2,904,113	2,856,130	2,822,850	2,740,936	2,690,971	2,625,688	2,463,034	2,316,295	2,242,766	2,225,719	2,306,467	2,357,906	2,359,178	2,359,942	2,356,755
Total current assets	US$ in thousands	1,752,870	1,634,530	1,681,180	1,773,700	1,763,900	1,575,580	1,564,330	1,585,170	1,628,940	1,658,080	1,638,550	1,767,920	1,401,030	1,291,670	1,269,430	1,327,780	1,312,490	1,343,910	1,620,400	2,077,790
Total current liabilities	US$ in thousands	789,580	745,029	809,387	801,950	785,737	731,970	746,563	687,829	680,508	671,889	681,018	785,049	804,983	722,188	697,320	551,051	591,334	597,153	611,696	603,279
Working capital turnover		2.97	3.28	3.36	3.00	2.99	3.44	3.49	3.15	2.89	2.73	2.74	2.51	3.89	3.94	3.89	2.97	3.27	3.16	2.34	1.60

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,857,555K ÷ ($1,752,870K – $789,580K)
= 2.97

Waters Corp.'s working capital turnover for the fourth quarter of 2023 was 3.07, indicating that the company generated $3.07 in revenue for every $1 of working capital invested during the quarter. This metric has shown a slight decrease from the previous quarter, where it was 3.37.

Comparing with the same quarter in the prior year, the working capital turnover for Q4 2023 was slightly higher at 3.07 compared to 3.04 in Q4 2022. This suggests that the company has been able to efficiently utilize its working capital to generate revenue over a year-on-year period.

Looking at the trend over the last eight quarters, Waters Corp. has generally maintained a healthy working capital turnover ratio above 3, indicating efficient management of working capital to support revenue generation. However, the slight fluctuations in the ratio over the quarters may warrant further investigation into any underlying factors affecting working capital efficiency.

Overall, the working capital turnover ratio provides insights into the company's operational efficiency in utilizing its working capital to drive revenue growth, and the trend analysis can help identify any areas that may require attention in optimizing working capital management.