Lantheus Holdings Inc (LNTH)

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	1,276,389	1,187,351	1,109,989	1,015,127	927,032	795,018	657,874	534,885	418,071	381,423	366,815	331,865	329,671	327,749	325,304	339,127	332,643	342,560	343,779	346,682
Total current assets	US$ in thousands	1,085,820	948,435	752,219	773,274	677,616	501,898	404,422	324,747	235,791	201,521	186,213	168,354	184,225	184,532	181,156	180,377	172,911	154,386	139,861	195,498
Total current liabilities	US$ in thousands	187,350	176,602	154,043	276,388	247,701	235,984	219,016	177,657	90,497	76,903	73,826	64,590	80,504	82,000	76,336	61,959	66,111	59,586	53,357	42,768
Working capital turnover		1.42	1.54	1.86	2.04	2.16	2.99	3.55	3.64	2.88	3.06	3.26	3.20	3.18	3.20	3.10	2.86	3.11	3.61	3.97	2.27

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,276,389K ÷ ($1,085,820K – $187,350K)
= 1.42

The working capital turnover of Lantheus Holdings Inc has shown a declining trend over the past four quarters. In Q4 2023, the working capital turnover stood at 1.44, a decrease from the previous quarter's turnover of 1.56 in Q3 2023. This suggests that the company's ability to efficiently utilize its working capital to generate sales revenue has weakened.

Comparing the current turnover ratio to the same period in the previous year, Q4 2022, the decline is more pronounced. The turnover ratio has decreased from 2.17 in Q4 2022 to 1.44 in Q4 2023, indicating a significant decrease in the efficiency with which Lantheus Holdings Inc is utilizing its working capital.

Overall, the decreasing trend in working capital turnover could indicate potential inefficiencies in the management of working capital and the company's ability to convert its current assets into sales. It is important for Lantheus Holdings Inc to closely monitor and improve its working capital turnover to enhance operational efficiency and financial performance.