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.