Dynavax Technologies Corporation (DVAX)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 277,246 | 232,284 | 722,683 | 439,442 | 46,551 |
Total current assets | US$ in thousands | 848,941 | 859,120 | 683,841 | 607,285 | 228,725 |
Total current liabilities | US$ in thousands | 78,634 | 62,195 | 150,074 | 556,402 | 77,411 |
Working capital turnover | 0.36 | 0.29 | 1.35 | 8.64 | 0.31 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $277,246K ÷ ($848,941K – $78,634K)
= 0.36
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. Looking at the data provided for Dynavax Technologies Corporation:
1. December 31, 2020: The working capital turnover was 0.31, indicating that for each dollar of working capital, the company generated $0.31 of revenue. This suggests a relatively inefficient use of working capital in that period.
2. December 31, 2021: The working capital turnover significantly improved to 8.64, signaling a substantial increase in efficiency in utilizing working capital to generate revenue. This could be a positive sign of more effective working capital management.
3. December 31, 2022: The ratio dropped to 1.35, still indicating a reasonable level of efficiency in converting working capital into revenue, although not as high as the previous year.
4. December 31, 2023: The working capital turnover decreased sharply to 0.29, suggesting a decrease in efficiency in utilizing working capital to generate revenue compared to the previous periods.
5. December 31, 2024: The ratio slightly improved to 0.36, but it remains relatively low compared to the peak in 2021, indicating room for improvement in working capital management efficiency.
Overall, the working capital turnover for Dynavax Technologies Corporation fluctuated over the years, reaching both high levels of efficiency and periods of inefficiency. It is essential for the company to closely monitor and manage its working capital to ensure optimal utilization and improve overall financial performance.
Peer comparison
Dec 31, 2024