Fulgent Genetics Inc (FLGT)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 283,470 | 289,213 | 618,968 | 992,584 | 421,712 |
| Total current assets | US$ in thousands | 353,571 | 507,845 | 905,632 | 1,074,460 | 615,726 |
| Total current liabilities | US$ in thousands | 72,899 | 73,018 | 116,178 | 112,840 | 131,074 |
| Working capital turnover | 1.01 | 0.67 | 0.78 | 1.03 | 0.87 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $283,470K ÷ ($353,571K – $72,899K)
= 1.01
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. In the case of Fulgent Genetics Inc, the working capital turnover has shown fluctuations over the years.
- In 2020, Fulgent Genetics had a working capital turnover ratio of 0.87, indicating that it generated $0.87 in sales for every dollar of working capital invested.
- By the end of 2021, the ratio improved to 1.03, demonstrating that the company was able to generate $1.03 in sales for each dollar of working capital.
- However, in 2022, the ratio decreased to 0.78, suggesting a decrease in efficiency in utilizing working capital to generate sales.
- The trend continued in 2023, with a further decline in the ratio to 0.67, indicating a potential inefficiency in managing working capital.
- By the end of 2024, the working capital turnover ratio improved again to 1.01, showing a return to a more efficient utilization of working capital to drive sales.
Overall, the fluctuations in the working capital turnover ratio for Fulgent Genetics Inc indicate varying levels of efficiency in managing working capital to generate sales over the years. It is essential for the company to closely monitor and improve this ratio to ensure optimal utilization of resources and sustainable operational performance.
Peer comparison
Dec 31, 2024