Myriad Genetics Inc (MYGN)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	837,600	753,200	678,400	690,600	557,000
Total current assets	US$ in thousands	298,000	313,600	274,600	484,800	389,400
Total current liabilities	US$ in thousands	164,100	155,900	137,200	204,300	145,900
Working capital turnover		6.26	4.78	4.94	2.46	2.29

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $837,600K ÷ ($298,000K – $164,100K)
= 6.26

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. In the case of Myriad Genetics Inc, we observe an escalating trend in the working capital turnover ratio over the years, increasing from 2.29 in December 31, 2020, to 6.26 in December 31, 2024. This implies that the company has been more efficient in its management of working capital, effectively converting each unit of working capital into sales revenue.

The substantial increase in the working capital turnover from 2020 to 2024 suggests that Myriad Genetics has improved its operational efficiency and liquidity management, allowing it to generate higher sales relative to its working capital. This could be due to improvements in inventory management, collection of receivables, or more effective utilization of current assets.

Overall, the upward trend in the working capital turnover ratio for Myriad Genetics Inc indicates a positive shift towards better working capital management and operational performance, which could potentially lead to enhanced profitability and financial stability in the long term.