ACADIA Pharmaceuticals Inc (ACAD)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 957,797 726,437 517,235 484,145 441,755
Total current assets US$ in thousands 938,318 616,125 507,937 617,823 717,616
Total current liabilities US$ in thousands 394,870 254,254 125,630 96,068 105,967
Working capital turnover 1.76 2.01 1.35 0.93 0.72

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $957,797K ÷ ($938,318K – $394,870K)
= 1.76

Based on the provided data, ACADIA Pharmaceuticals Inc's working capital turnover has shown a positive trend over the years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

In 2020, the working capital turnover ratio was 0.72, indicating that the company was generating $0.72 in sales for every dollar of working capital invested. By 2024, the ratio had increased to 1.76, showing a significant improvement in efficiency.

The increase in the working capital turnover ratio suggests that ACADIA Pharmaceuticals Inc has improved its management of working capital, leading to a more efficient use of resources and potentially increasing profitability. This trend may indicate a more streamlined operation and better inventory management, which could positively impact the company's overall financial health.

Overall, the improving working capital turnover ratio reflects positively on ACADIA Pharmaceuticals Inc's operational efficiency and financial performance over the years.