Waters Corporation (WAT)

Working capital turnover

		Dec 31, 2024	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
Revenue (ttm)	US$ in thousands	2,909,141	2,825,198	2,766,143	2,798,644	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
Total current assets	US$ in thousands	1,669,110	1,647,720	1,603,680	1,642,960	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
Total current liabilities	US$ in thousands	789,758	816,040	762,532	848,459	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
Working capital turnover		3.31	3.40	3.29	3.52	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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,909,141K ÷ ($1,669,110K – $789,758K)
= 3.31

The working capital turnover ratio for Waters Corporation has shown some fluctuations over the years. The ratio decreased from 3.89 in June 2020 to 2.51 in March 2021, indicating a decrease in the efficiency of utilizing working capital to generate revenue during that period. However, the ratio improved gradually and reached 3.49 by June 2022, suggesting a better utilization of working capital.

Overall, the working capital turnover ratio has shown some variability but has generally maintained a range between 2.5 and 3.5 in recent years. This indicates that Waters Corporation has been effectively managing its working capital to support its operations and generate revenue efficiently. It is important for the company to continue monitoring and managing its working capital effectively to ensure smooth operations and financial performance.