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.