Glaukos Corp (GKOS)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	373,901	353,962	331,942	313,252	303,223	293,554	286,692	278,963	272,731	274,744	281,666	290,488	292,910	292,904	283,025	236,490	222,935	215,550	208,628	235,970
Total current assets	US$ in thousands	449,792	397,282	383,781	388,610	395,461	399,529	401,260	415,880	443,859	448,841	471,097	491,203	486,126	501,808	490,535	474,299	469,442	454,445	453,222	231,386
Total current liabilities	US$ in thousands	75,125	71,684	70,083	72,238	74,014	67,147	63,886	62,392	72,359	60,615	69,508	55,596	63,360	63,450	349,477	335,564	49,702	46,693	54,831	51,077
Working capital turnover		1.00	1.09	1.06	0.99	0.94	0.88	0.85	0.79	0.73	0.71	0.70	0.67	0.69	0.67	2.01	1.70	0.53	0.53	0.52	1.31

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $373,901K ÷ ($449,792K – $75,125K)
= 1.00

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. In the case of Glaukos Corp, the trend of the working capital turnover ratio from March 31, 2020, to December 31, 2024, shows fluctuations.

The ratios ranged from a low of 0.52 on June 30, 2020, to a high of 2.01 on June 30, 2021, indicating significant variability in the efficiency of working capital management over the period. The ratio generally improved from 2020 to 2021, indicating better utilization of working capital to generate sales.

However, after peaking in June 2021, the ratio declined and fluctuated within a narrower range between 0.67 and 1.09 from September 2021 to September 2024, suggesting a stabilization in the working capital turnover efficiency.

Overall, a working capital turnover ratio higher than 1 implies that Glaukos Corp generates more revenue per unit of working capital, indicating efficient utilization. The company should continue to monitor and improve its working capital management to sustain and enhance its operational efficiency.