Hims Hers Health Inc (HIMS)
Working capital turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 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 | 1,658 |
| Total current liabilities | US$ in thousands | 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 | 979 |
| Working capital turnover | 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,241,994K ÷ ($326,375K – $152,645K)
= 7.15
The working capital turnover of Hims Hers Health Inc has shown a consistent improvement over the years, indicating an efficient management of its working capital. The ratio has been increasing steadily from 0.53 in March 2021 to 7.15 in September 2024. This signifies that the company is generating more revenue relative to its working capital, which is a positive indicator of operational efficiency.
The significant improvement in the working capital turnover demonstrates that the company is effectively utilizing its current assets to support its operations and generate sales. It shows that Hims Hers Health Inc is able to convert its working capital into revenue at a faster pace, which is essential for sustainable growth and profitability.
Overall, the increasing trend in the working capital turnover ratio reflects positively on the company's financial efficiency and operational performance. It suggests that Hims Hers Health Inc has been successful in managing its working capital effectively to support its business activities and drive revenue growth.