Hims Hers Health Inc (HIMS)
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 | 1,476,514 | 1,241,994 | 1,067,137 | 959,401 | 872,000 | 792,584 | 710,721 | 616,372 | 526,916 | 444,412 | 373,749 | 320,878 | 271,878 | 228,645 | 195,796 | 171,008 | 148,757 | 132,060 | 90,736 | 54,832 |
| Total current assets | US$ in thousands | 395,831 | 326,375 | 290,918 | 261,734 | 265,053 | 250,219 | 234,648 | 225,525 | 216,595 | 233,455 | 230,485 | 231,946 | 269,905 | 274,233 | 336,342 | 340,196 | 113,084 | 1,333 | 1,476 | 1,599 |
| Total current liabilities | US$ in thousands | 221,367 | 152,645 | 108,671 | 93,324 | 88,468 | 82,545 | 66,547 | 56,283 | 47,941 | 66,818 | 55,623 | 48,500 | 79,221 | 52,498 | 27,344 | 19,680 | 15,228 | 3,038 | 1,168 | 1,167 |
| Working capital turnover | 8.46 | 7.15 | 5.86 | 5.70 | 4.94 | 4.73 | 4.23 | 3.64 | 3.12 | 2.67 | 2.14 | 1.75 | 1.43 | 1.03 | 0.63 | 0.53 | 1.52 | — | 294.60 | 126.93 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,476,514K ÷ ($395,831K – $221,367K)
= 8.46
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.
Based on the data provided for Hims Hers Health Inc, the working capital turnover ratio has been fluctuating over the quarters. In March 2020, the ratio was exceptionally high at 126.93, indicating that the company was efficient in generating sales revenue relative to its working capital. However, this ratio dropped significantly in subsequent quarters, hitting a low of 0.53 in March 2021.
From March 2021 onwards, there was a gradual improvement in the working capital turnover ratio, reaching 8.46 by December 2024. This suggests that the company has enhanced its utilization of working capital to generate higher sales revenue efficiently.
Overall, the trend in the working capital turnover ratio for Hims Hers Health Inc indicates fluctuations in the efficiency of working capital management, with an improvement seen in recent periods. This improvement is a positive sign as it signifies better operational efficiency and financial performance.
Peer comparison
Dec 31, 2024