Halozyme Therapeutics Inc (HALO)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,015,324	947,355	873,304	862,989	829,253	780,710	773,653	704,980	660,116	580,623	487,477	471,567	443,310	463,010	412,496	331,262	267,594	199,556	180,470	164,397
Total current assets	US$ in thousands	1,085,340	1,126,980	987,797	873,584	746,424	879,006	765,745	615,019	739,013	653,201	541,938	988,689	926,287	1,017,300	999,750	941,719	554,764	498,895	500,358	467,971
Total current liabilities	US$ in thousands	139,100	108,815	133,360	131,639	112,494	115,185	116,393	91,919	130,789	109,384	199,512	111,691	117,147	113,153	114,251	107,421	421,385	26,976	26,073	42,002
Working capital turnover		1.07	0.93	1.02	1.16	1.31	1.02	1.19	1.35	1.09	1.07	1.42	0.54	0.55	0.51	0.47	0.40	2.01	0.42	0.38	0.39

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,015,324K ÷ ($1,085,340K – $139,100K)
= 1.07

Halozyme Therapeutics Inc's working capital turnover has shown fluctuations over the years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is efficient in utilizing its working capital to generate revenue.

From March 31, 2020, to December 31, 2020, the working capital turnover ratio increased significantly from 0.39 to 2.01, which suggests that the company improved its efficiency in generating revenue using its working capital during this period. This improvement could be attributed to better management of working capital components such as inventory, accounts receivable, and accounts payable.

Subsequently, from March 31, 2021, to June 30, 2024, the working capital turnover ratio fluctuated within a range of 0.38 to 1.42. Although there were fluctuations, the ratios remained relatively stable above 1.0, indicating that Halozyme Therapeutics continued to efficiently utilize its working capital to generate sales.

Overall, the working capital turnover ratios display a trend of improvement and efficiency in the company's working capital management, translating to better utilization of resources to drive revenue generation. However, it is important to monitor these ratios continuously to ensure consistent operational efficiency and financial performance.