Halozyme Therapeutics Inc (HALO)

Short-term

Turnover ratios

Halozyme Therapeutics Inc's inventory turnover has shown a fluctuating trend over the past few years; it increased from 0.71 in 2020 to 1.51 in 2021, dipped slightly to 1.39 in 2022, increased again to 1.51 in 2023, and then dropped to 1.12 in 2024. This signifies how many times inventory was sold and replaced within a specific period, revealing the efficiency of inventory management.

The receivables turnover ratio, which indicates how many times receivables are collected during a period, has not been provided for any of the years, making it challenging to assess the effectiveness of the company in collecting outstanding receivables promptly.

The payables turnover ratio, which evaluates how quickly a company pays its suppliers, is also not available, hindering an assessment of the company's payment practices and relationships with suppliers.

For the working capital turnover ratio, which measures how efficiently working capital is being used to generate sales, the values have ranged from 0.55 to 2.01 from 2020 to 2024. A higher working capital turnover ratio suggests effective utilization of resources to drive sales, with the ratio fluctuating over the years indicating shifts in working capital efficiency.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into efficiency and resource utilization, the lack of information on receivables turnover and payables turnover ratios limits the comprehensive analysis of Halozyme Therapeutics Inc's activity ratios.

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Average number of days

Halozyme Therapeutics Inc's activity ratios reveal insights into the efficiency of its inventory management, collection of receivables, and payment of payables.

1. Days of Inventory on Hand (DOH):
- Halozyme's DOH has fluctuated over the years, showcasing varying levels of inventory management efficiency.
- In 2020, the company held inventory for an average of 511.28 days, indicating a potential issue of excess inventory or slow-moving goods.
- The DOH improved significantly in 2021 to 241.69 days, suggesting a better control over inventory levels.
- However, in 2024, the DOH increased to 324.80 days, signaling a potential backlog in inventory turnover.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO, which is typically used to assess how efficiently the company is collecting receivables from customers.
- Without this data, it is difficult to evaluate Halozyme's effectiveness in managing its accounts receivable.

3. Number of Days of Payables:
- Similar to DSO, the information on the number of days of payables is not available, making it challenging to analyze how promptly the company is paying its suppliers.
- Timely payment of payables is crucial for maintaining good relationships with vendors and managing cash flow effectively.

In conclusion, while the data on DOH provides some insights into Halozyme's inventory management efficiency, the lack of information on DSO and payables limits a comprehensive analysis of the company's overall activity ratios. It would be beneficial to obtain additional data on receivables and payables to gain a more complete picture of Halozyme's operational effectiveness.

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Long-term

The fixed asset turnover ratio for Halozyme Therapeutics Inc has shown significant fluctuations over the years. In 2020, the ratio was 25.26, indicating that the company generated $25.26 in revenue for every dollar invested in fixed assets. This ratio increased sharply to 50.41 in 2021, suggesting improved efficiency in utilizing fixed assets to generate revenue. However, there was a notable decline in 2022 to 8.74, signaling a potential decrease in the company's ability to generate sales from its fixed assets. The absence of data for 2023 and 2024 makes it difficult to assess the trend or ascertain the reasons behind these fluctuations.

On the other hand, the total asset turnover ratio, which measures the company's efficiency in generating revenue from all assets, has shown a declining trend from 0.46 in 2020 to 0.40 in 2021 and further to 0.36 in 2022. This indicates a decreasing ability to generate sales from the total asset base over the years. However, the ratio slightly improved to 0.48 in 2023 and 0.49 in 2024, showing a potential recovery or increased efficiency in asset utilization during those years.

Overall, the analysis of Halozyme Therapeutics Inc's long-term activity ratios suggests fluctuations in the efficiency of utilizing fixed assets to generate revenue and a mixed performance in generating sales from the total asset base over the years 2020 to 2024.