Amphastar P (AMPH)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 731,967 644,395 498,987 437,768 349,846
Total current assets US$ in thousands 534,071 489,600 378,319 318,119 279,682
Total current liabilities US$ in thousands 173,759 225,407 94,862 103,810 112,201
Working capital turnover 2.03 2.44 1.76 2.04 2.09

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $731,967K ÷ ($534,071K – $173,759K)
= 2.03

The working capital turnover of Amphastar P has shown fluctuations over the past five years.

- In December 31, 2020, the working capital turnover was 2.09, indicating that the company generated $2.09 in revenue for every dollar of working capital employed.
- This ratio decreased to 2.04 in December 31, 2021, suggesting a slight decrease in efficiency in utilizing working capital to generate revenue.
- By December 31, 2022, the working capital turnover further dropped to 1.76, indicating a potential decline in operational efficiency or possible challenges in managing working capital effectively.
- However, the ratio rebounded significantly to 2.44 by December 31, 2023, showing a substantial improvement in leveraging working capital to generate revenue.
- Yet, it decreased again to 2.03 by December 31, 2024, indicating a slight decrease in efficiency compared to the previous year.

Overall, the working capital turnover ratio for Amphastar P has been somewhat volatile over the period analyzed, suggesting fluctuations in the company's ability to efficiently utilize working capital to drive revenue generation. It would be essential for the company to closely monitor and manage its working capital effectively to ensure optimal operations and financial performance.