Halozyme Therapeutics Inc (HALO)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,015,320 829,253 660,116 443,310 267,594
Total current assets US$ in thousands 1,085,340 746,424 739,013 926,287 554,764
Total current liabilities US$ in thousands 139,100 112,494 130,789 117,147 421,385
Working capital turnover 1.07 1.31 1.09 0.55 2.01

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,015,320K ÷ ($1,085,340K – $139,100K)
= 1.07

Halozyme Therapeutics Inc's working capital turnover has shown fluctuating trends over the past five years. The ratio was 2.01 as of December 31, 2020, indicating that the company effectively utilized its working capital to generate revenue. However, there was a significant drop in the ratio to 0.55 as of December 31, 2021, suggesting a decrease in the efficiency of working capital utilization.

Subsequently, there was an improvement in the ratio to 1.09 as of December 31, 2022, indicating better management of working capital. The trend continued to improve with ratios of 1.31 and 1.07 as of December 31, 2023, and December 31, 2024, respectively, showcasing a steady utilization of working capital to support the company's operations and generate sales.

Overall, the working capital turnover ratio has shown variability in the efficiency of utilizing working capital during the period under review. It is essential for Halozyme Therapeutics Inc to maintain a balance between managing its working capital effectively to support operational needs and ensuring optimal revenue generation.