Krystal Biotech Inc (KRYS)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	55,764	498	—	—	—
Total current assets	US$ in thousands	587,909	383,779	442,267	275,058	195,880
Total current liabilities	US$ in thousands	33,094	28,847	25,736	15,452	3,327
Working capital turnover		0.10	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $55,764K ÷ ($587,909K – $33,094K)
= 0.10

Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. The formula for working capital turnover is Net Sales / Average Working Capital.

Based on the data provided, Krystal Biotech Inc's working capital turnover has varied significantly in recent years. In 2023, the working capital turnover was 0.10, indicating that for every $1 of working capital, the company generated $0.10 in sales revenue. This represents an improvement compared to the previous year where the ratio was 0.00.

A working capital turnover of 0.00 in 2022 and prior years suggests that the company either had very low sales relative to its working capital or had a significant amount of excess working capital that was not effectively deployed to generate revenue.

In general, a higher working capital turnover ratio is preferred as it indicates that the company is efficiently using its working capital to support sales activities. However, it is essential to consider industry norms and company-specific factors when evaluating the efficiency of working capital turnover.

Overall, the increase in working capital turnover from 0.00 to 0.10 in 2023 suggests a positive trend towards more effective utilization of working capital to drive sales for Krystal Biotech Inc.