Innoviva Inc (INVA)

Working capital turnover

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Revenue (ttm) US$ in thousands 291,306 265,493 264,791 292,746 287,188 335,952 366,863 358,359 372,796 355,782 346,801 325,125 318,463 308,609 285,580 270,641 247,045 250,932 246,312 253,952
Total current assets US$ in thousands 36,585 304,999 323,538 296,446 33,245 454,591 400,328 317,823 313,673 49,746 148,261 372,933 342,058 17,024 500,193 466,907 431,234 366,795 317,685 251,519
Total current liabilities US$ in thousands 38,134 36,183 39,398 38,137 7,004 163,884 125,908 109,227 5,807 9,348 5,371 3,804 6,110 6,862 5,414 2,798 5,371 3,329 7,475 3,810
Working capital turnover — 0.99 0.93 1.13 10.94 1.16 1.34 1.72 1.21 8.81 2.43 0.88 0.95 30.37 0.58 0.58 0.58 0.69 0.79 1.03

December 31, 2023 calculation

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

The working capital turnover ratio measures the efficiency of a company in using its working capital to generate sales revenue. A higher ratio indicates that the company is effectively utilizing its working capital to support its operations.

In the case of Innoviva Inc, the working capital turnover has fluctuated over the past eight quarters. In Q1 2022, the ratio was at its highest at 1.90, suggesting that for every $1 of working capital invested, the company generated $1.90 in sales revenue. This indicates a strong efficiency in utilizing its current assets to generate revenue.

However, the ratio has since decreased gradually, reaching its lowest point at 1.01 in Q4 2023. This decline may indicate a decreasing efficiency in using working capital to support sales activity. The trend implies that Innoviva Inc may be experiencing challenges in generating sufficient sales relative to its working capital investment.

Overall, while the working capital turnover ratio has shown fluctuations over the quarters, it is essential for Innoviva Inc to monitor and improve its efficiency in using working capital to drive sales growth and overall financial performance.