Innoviva Inc (INVA)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 291,306 294,888 372,796 318,463 242,036
Total current assets US$ in thousands 36,585 33,245 313,673 342,058 431,234
Total current liabilities US$ in thousands 38,134 7,004 5,807 6,110 5,371
Working capital turnover — 11.24 1.21 0.95 0.57

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $291,306K ÷ ($36,585K – $38,134K)
= —

The working capital turnover for Innoviva Inc has fluctuated over the past five years. In 2023, the working capital turnover was 1.01, which indicates that the company generated $1.01 in revenue for every dollar of working capital invested. This ratio decreased from the previous year, suggesting a slight decline in efficiency in managing working capital.

Comparing to 2021 when the ratio reached 1.27, there was a notable decrease in efficiency in 2023. In 2020, the working capital turnover was at 1.00, indicating that revenue generated was equal to working capital invested. Furthermore, in 2019, the ratio was 0.61, showing an improvement over the years leading up to 2023.

Overall, while the working capital turnover ratio for Innoviva Inc has shown some variability, it is crucial for the company to effectively manage its working capital to optimize revenue generation and operational efficiency in the future.