ACADIA Pharmaceuticals Inc (ACAD)

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	957,797	929,236	890,534	813,806	726,437	631,886	550,901	520,229	517,235	511,503	512,401	493,059	484,145	474,394	463,359	458,241	441,755	419,074	393,083	366,185
Total current assets	US$ in thousands	938,318	788,284	728,916	675,296	616,125	499,170	492,628	502,850	507,937	521,552	532,519	542,223	617,823	640,917	645,730	673,984	717,616	730,213	735,735	724,421
Total current liabilities	US$ in thousands	394,870	343,945	337,851	330,597	254,254	209,603	187,942	224,301	125,630	116,570	117,681	119,603	96,068	88,218	95,328	109,373	105,967	91,856	86,422	99,741
Working capital turnover		1.76	2.09	2.28	2.36	2.01	2.18	1.81	1.87	1.35	1.26	1.24	1.17	0.93	0.86	0.84	0.81	0.72	0.66	0.61	0.59

December 31, 2024 calculation

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

Working capital turnover reflects how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates better efficiency in managing working capital.

Analyzing the working capital turnover of ACADIA Pharmaceuticals Inc over the period from March 31, 2020, to December 31, 2024, we observe a gradual increase in the ratio. The ratio has shown an upward trend from 0.59 on March 31, 2020, to 1.76 on December 31, 2024.

The trend suggests that the company has been improving its efficiency in managing its working capital to support its sales activities. This improvement could be attributed to better inventory management, accounts receivable collection, and accounts payable management practices.

Overall, the increasing trend in the working capital turnover ratio for ACADIA Pharmaceuticals Inc indicates a positive sign of efficiency in utilizing its working capital to generate revenue over the specified period.