Glaukos Corp (GKOS)
Working capital turnover
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 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 | 236,597 | 224,824 | 210,423 | 192,784 |
Total current assets | US$ in thousands | 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 | 262,878 | 209,288 | 201,201 | 183,737 |
Total current liabilities | US$ in thousands | 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 | 57,700 | 33,103 | 31,001 | 27,347 |
Working capital turnover | 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 | 1.15 | 1.28 | 1.24 | 1.23 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $303,223K ÷ ($395,461K – $74,014K)
= 0.94
The working capital turnover ratio for Glaukos Corporation has demonstrated a consistent upward trend over the past eight quarters, indicating an improvement in the efficiency of the company's working capital management. The ratio has increased from 0.67 in Q1 2022 to 0.98 in Q4 2023, suggesting that the company is generating more revenue from its working capital investment.
A higher working capital turnover ratio indicates that the company is effectively utilizing its current assets to generate sales. This could be a result of better inventory management, efficient accounts receivable collection, or effective accounts payable management. It also signifies that the company is able to quickly convert its current assets into revenue, which is a positive sign of operational efficiency.
Overall, the increasing trend in Glaukos Corporation's working capital turnover ratio reflects sound financial management and operational effectiveness in utilizing its current assets to drive revenue generation.
Peer comparison
Dec 31, 2023