Halozyme Therapeutics Inc (HALO)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	809,880	641,313	435,810	267,594	195,992
Total current assets	US$ in thousands	746,424	739,013	926,287	554,764	543,436
Total current liabilities	US$ in thousands	112,494	130,789	117,147	421,385	85,637
Working capital turnover		1.28	1.05	0.54	2.01	0.43

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $809,880K ÷ ($746,424K – $112,494K)
= 1.28

Halozyme Therapeutics Inc.'s working capital turnover has fluctuated over the past five years. In 2023, the company's working capital turnover ratio was 1.31, indicating that for every dollar of working capital, the company generated $1.31 in revenue. This represents an improvement compared to the previous year, where the ratio was 1.09.

In 2021, the working capital turnover ratio was relatively low at 0.55, suggesting that the company was not efficiently utilizing its working capital to generate revenue. However, there was a significant improvement in 2020 with a ratio of 2.01, indicating a more effective management of working capital during that year.

The lowest ratio in the period under review was in 2019 at 0.43, highlighting a potential inefficiency in utilizing working capital to drive sales. Overall, the trend in working capital turnover shows variability, with a mix of strong and weak performance over the years. It is essential for the company to maintain a balance in managing working capital efficiently to support sustainable growth and profitability.