Biomarin Pharmaceutical Inc (BMRN)

Short-term

Turnover ratios

Biomarin Pharmaceutical Inc's activity ratios provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital turnover.

1. Inventory Turnover: The inventory turnover ratio has shown a declining trend over the years, decreasing from 0.75 in 2020 to 0.47 in 2024. This indicates that Biomarin Pharmaceutical is taking longer to sell its inventory, which may suggest potential issues with inventory management or slower sales.

2. Receivables Turnover: The receivables turnover ratio fluctuated during the period, with a peak of 4.91 in 2021 and a low of 3.75 in 2023. A higher receivables turnover ratio generally indicates that the company is collecting its receivables more efficiently. Biomarin Pharmaceutical's performance in this area has been relatively stable overall.

3. Payables Turnover: The data provided does not include information on payables turnover for any of the years. This ratio is crucial for understanding how quickly Biomarin Pharmaceutical is paying its suppliers, and the absence of data may limit a comprehensive analysis of the company's payment practices.

4. Working Capital Turnover: The working capital turnover has fluctuated over the years, reaching a peak of 1.33 in 2023. This ratio measures how effectively the company is utilizing its working capital to generate sales revenue. Biomarin Pharmaceutical's ability to generate sales relative to its working capital has varied but remained relatively stable over the period.

In conclusion, Biomarin Pharmaceutical's activity ratios reflect mixed performance in managing its operational efficiency. The company may benefit from focusing on improving inventory turnover and maintaining stable receivables turnover to enhance its overall operations management.

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Average number of days

Biomarin Pharmaceutical Inc's activity ratios provide insights into the efficiency of managing its inventory and receivables.

1. Days of Inventory on Hand (DOH):
- Biomarin's DOH has increased from 486.33 days in 2020 to 775.41 days in 2024.
- This indicates that the company is holding inventory for a longer period, which may tie up working capital and increase storage costs.
- A high DOH may also suggest potential obsolescence or slow-moving inventory, requiring management attention to optimize inventory levels.

2. Days of Sales Outstanding (DSO):
- Biomarin's DSO fluctuated over the years, with a low of 74.36 days in 2021 and a high of 97.42 days in 2023.
- A decreasing DSO is generally positive as it indicates that the company is collecting receivables more quickly.
- However, an increasing DSO could suggest difficulties in collecting payment from customers promptly and may impact cash flow.

3. Number of Days of Payables:
- The data provided does not include the number of days of payables for Biomarin, showing as "— days" for all years.
- Days of payables would have provided insights into how long the company takes to pay its suppliers, influencing cash flow and relationships with vendors.
- Without this data, it is challenging to assess Biomarin's efficiency in managing its payables and working capital.

Overall, Biomarin Pharmaceutical Inc's activity ratios indicate a need for monitoring and potential optimization of inventory management and receivables collection processes. The lack of information on payables hinders a complete assessment of the company's overall efficiency in managing its working capital.

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Long-term

Biomarin Pharmaceutical Inc's fixed asset turnover has shown a steady increase over the years, from 1.77 in both 2020 and 2021 to 2.73 in 2024. This indicates that the company is generating more revenue per dollar of fixed assets invested, which is a positive sign of operational efficiency and utilization of fixed assets.

Similarly, the total asset turnover ratio has also shown improvement, increasing from 0.31 in 2020 and 2021 to 0.41 in 2024. This suggests that Biomarin Pharmaceutical Inc has become more efficient in generating sales revenue relative to its total assets. An increasing total asset turnover ratio indicates better utilization of assets to generate revenue and reflects improved asset management efficiency over the years.