ANI Pharmaceuticals Inc (ANIP)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	454,334	287,962	202,731	198,984	206,547
Total current assets	US$ in thousands	519,816	344,261	321,775	170,321	187,695
Total current liabilities	US$ in thousands	145,477	99,439	87,537	78,565	61,676
Working capital turnover		1.21	1.18	0.87	2.17	1.64

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $454,334K ÷ ($519,816K – $145,477K)
= 1.21

The working capital turnover ratio for ANI Pharmaceuticals Inc has shown some fluctuation over the past five years. In 2023, the ratio stands at 1.30, which indicates that the company is generating $1.30 in net sales for every dollar invested in working capital.

Comparing this to the previous years, the ratio was relatively stable around 1.29 in 2022 and 1.64 in 2019. However, in 2021, the ratio dropped to 0.92, suggesting a decrease in the efficiency of utilizing working capital to generate sales. This signifies a potential issue in managing working capital effectively during that period.

Conversely, the ratio spiked to 2.27 in 2020, indicating a significant improvement in working capital efficiency that year. This surge might be a result of better inventory management, faster collections from customers, or more efficient utilization of current assets to drive sales.

Overall, fluctuations in ANI Pharmaceuticals Inc's working capital turnover ratio over the years suggest varying levels of efficiency in utilizing working capital to generate sales, with a notable improvement in 2020 and a drop in 2021. Monitoring this ratio can provide insights into the company's operational effectiveness and financial health.