Hims Hers Health Inc (HIMS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,476,510 | 872,000 | 526,916 | 271,878 | 148,757 |
| Total current assets | US$ in thousands | 395,831 | 265,053 | 216,595 | 269,905 | 113,084 |
| Total current liabilities | US$ in thousands | 221,367 | 88,468 | 47,941 | 79,221 | 15,228 |
| Working capital turnover | 8.46 | 4.94 | 3.12 | 1.43 | 1.52 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,476,510K ÷ ($395,831K – $221,367K)
= 8.46
The working capital turnover ratio for Hims Hers Health Inc has shown a varying trend over the five years. In December 31, 2020, the ratio was 1.52, indicating that the company generated $1.52 in revenue for each dollar of working capital invested. However, in the following year, the ratio decreased to 1.43, suggesting a slight decrease in efficiency in utilizing working capital to generate revenue.
From December 31, 2021 to December 31, 2024, the working capital turnover ratio demonstrated a significant improvement, increasing from 1.43 to 8.46. This substantial increase indicates a remarkable enhancement in the company's ability to generate revenue using its working capital efficiently.
Overall, the upward trend in the working capital turnover ratio reflects an improvement in Hims Hers Health Inc's operational efficiency in utilizing its working capital to drive revenue growth over the years, reaching its highest level of 8.46 by December 31, 2024.
Peer comparison
Dec 31, 2024