Wolfspeed Inc (WOLF)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	808,400	641,700	715,400	780,300	879,900	881,000	849,900	784,800	699,400	624,100	566,500	539,700	592,900	652,800	734,000	857,800	896,200	941,700	1,000,689	1,165,805
Total current assets	US$ in thousands	2,999,600	3,331,000	3,446,100	4,079,700	3,606,500	2,848,800	3,084,300	1,754,200	1,762,400	1,838,000	1,149,600	1,231,900	1,478,700	1,598,300	1,479,300	1,485,300	1,592,800	1,230,200	1,292,600	1,353,000
Total current liabilities	US$ in thousands	665,300	727,000	671,200	749,300	627,900	607,200	460,000	380,800	388,500	322,600	341,000	319,000	448,800	382,800	385,600	343,400	291,200	251,400	248,500	242,700
Working capital turnover		0.35	0.25	0.26	0.23	0.30	0.39	0.32	0.57	0.51	0.41	0.70	0.59	0.58	0.54	0.67	0.75	0.69	0.96	0.96	1.05

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $808,400K ÷ ($2,999,600K – $665,300K)
= 0.35

The working capital turnover ratio for Wolfspeed Inc has fluctuated over the past few quarters, indicating changes in the efficiency of the company's management of its working capital. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

From the data provided, we can see that the working capital turnover ratio has ranged from as low as 0.23 to as high as 1.05 in recent periods. A higher ratio generally indicates that the company is able to generate more sales revenue with a lower level of working capital, which is a positive sign of efficiency.

In the most recent quarter, the working capital turnover ratio was 0.35, which suggests that for every dollar of working capital invested, the company generated $0.35 of sales revenue. This indicates a moderate level of efficiency in utilizing working capital.

It is important for Wolfspeed Inc to monitor its working capital turnover ratio consistently and strive to improve it over time to ensure optimal utilization of its resources and sustainable growth. Any significant deviations from historical trends should be further analyzed to identify potential areas for improvement in managing working capital effectively.