Dynavax Technologies Corporation (DVAX)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 235,104 722,936 435,169 42,046 20,843
Total current assets US$ in thousands 859,120 916,985 972,520 290,015 208,653
Total current liabilities US$ in thousands 62,195 150,074 556,402 77,411 53,047
Working capital turnover 0.30 0.94 1.05 0.20 0.13

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $235,104K ÷ ($859,120K – $62,195K)
= 0.30

The working capital turnover ratio measures a company's ability to efficiently utilize its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is more efficient in managing its working capital.

In the case of Dynavax Technologies Corp., the working capital turnover has shown fluctuations over the past five years. In 2023, the ratio decreased significantly to 0.29, suggesting that the company's ability to generate sales from its working capital declined. This could indicate potential inefficiencies in managing its current assets and liabilities to support revenue generation.

In contrast, in 2022 and 2021, Dynavax Technologies Corp. demonstrated stronger performance with working capital turnover ratios of 0.94 and 1.06, respectively. These higher ratios suggest that the company was more effective in utilizing its working capital to generate sales during those periods.

However, in 2020 and 2019, the working capital turnover ratios dropped to 0.22 and 0.23, respectively, indicating lower efficiency in converting working capital into sales revenue. This could potentially signal challenges in managing working capital effectively, which may impact the company's overall financial performance.

Overall, the fluctuating trend in Dynavax Technologies Corp.'s working capital turnover ratio highlights the importance of effectively managing working capital to drive sales and operational efficiency. Further analysis of the company's working capital management practices and strategies may be necessary to address fluctuations and improve overall financial performance.