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.