Fulgent Genetics Inc (FLGT)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 289,213 | 618,968 | 992,584 | 421,712 | 32,528 |
| Total current assets | US$ in thousands | 507,845 | 627,873 | 611,960 | 523,616 | 37,079 |
| Total current liabilities | US$ in thousands | 73,018 | 88,107 | 105,310 | 130,115 | 3,723 |
| Working capital turnover | 0.67 | 1.15 | 1.96 | 1.07 | 0.98 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $289,213K ÷ ($507,845K – $73,018K)
= 0.67
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its operations.
Analysis of Fulgent Genetics Inc's working capital turnover over the past five years shows fluctuations in the efficiency of working capital utilization. The ratio was relatively low in 2023 at 0.67, indicating a decline in the efficiency of working capital turnover compared to the previous year.
In 2022, the company exhibited a better performance with a higher ratio of 1.15, suggesting an improvement in utilizing its working capital to generate sales. The peak efficiency was observed in 2021 with a ratio of 1.96, indicating that Fulgent Genetics effectively leveraged its working capital to support revenue generation.
However, there was a slight decrease in efficiency in 2020 with a ratio of 1.07, followed by a further decline in 2019 to 0.98. Overall, Fulgent Genetics Inc's working capital turnover has shown variability over the past five years, with a general trend of fluctuating efficiency in utilizing working capital to support its sales activities.
Peer comparison
Dec 31, 2023