BioLife Solutions Inc (BLFS)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	97,977	142,625	160,996	118,837	48,087
Total current assets	US$ in thousands	148,761	120,604	138,452	126,088	114,712
Total current liabilities	US$ in thousands	32,734	42,178	44,582	42,700	15,573
Working capital turnover		0.84	1.82	1.72	1.43	0.49

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $97,977K ÷ ($148,761K – $32,734K)
= 0.84

The working capital turnover of BioLife Solutions Inc has exhibited fluctuations over the years. In 2020, the company's working capital turnover was 0.49, indicating that it generated revenue at a slower pace relative to its working capital. However, in the subsequent years, there was a significant improvement in efficiency with the ratios reaching 1.43 in 2021, 1.72 in 2022, and further increasing to 1.82 in 2023. This upward trend suggests that BioLife Solutions Inc was able to generate more revenue per dollar of working capital invested, reflecting better utilization of its working capital resources.

However, the ratio dropped to 0.84 in 2024, indicating a decrease in efficiency in converting working capital into revenue compared to the previous year. This decline could be a result of various factors such as changes in operational efficiency, shifts in business strategy, or fluctuations in the company's revenue and working capital levels. It will be essential for stakeholders to further investigate the reasons behind this drop and assess the company's overall financial performance and liquidity position.