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.