Lantheus Holdings Inc (LNTH)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,276,390	927,032	418,071	329,671	330,557
Total current assets	US$ in thousands	1,085,820	677,616	235,791	184,225	172,911
Total current liabilities	US$ in thousands	187,350	247,701	90,497	80,504	66,111
Working capital turnover		1.42	2.16	2.88	3.18	3.10

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,276,390K ÷ ($1,085,820K – $187,350K)
= 1.42

Lantheus Holdings Inc's working capital turnover has shown a declining trend over the past five years. The ratio decreased from 3.25 in 2019 to 1.44 in 2023. This indicates that the company's efficiency in generating revenue from its working capital has decreased over time.

A low working capital turnover ratio may suggest inefficiency in managing the company's working capital, which includes current assets and current liabilities. It could imply that the company is not effectively utilizing its current assets to generate sales or that it is holding excessive levels of working capital.

It is important to further analyze the reasons behind the declining trend in working capital turnover and assess whether there are any underlying issues affecting the company's operational efficiency and liquidity.