Myriad Genetics Inc (MYGN)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Jun 30, 2020	Jun 30, 2019
Revenue	US$ in thousands	745,400	675,200	846,000	627,800	840,000
Total current assets	US$ in thousands	313,600	274,600	484,800	331,700	348,600
Total current liabilities	US$ in thousands	155,900	137,200	204,300	147,000	117,800
Working capital turnover		4.73	4.91	3.02	3.40	3.64

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $745,400K ÷ ($313,600K – $155,900K)
= 4.73

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.

Myriad Genetics, Inc.'s working capital turnover has shown variation over the past five periods. In 2023, the ratio was 4.78, which decreased slightly from 4.94 in 2022. This decline may suggest a marginal decrease in the company's ability to generate sales revenue relative to its working capital.

Comparing the most recent data to earlier years, it is evident that the working capital turnover ratio has significantly improved from 2.46 in 2021 to 4.78 in 2023. This substantial increase reflects enhanced efficiency in utilizing working capital to drive sales during this period.

In general, Myriad Genetics, Inc. has demonstrated a relatively strong performance in terms of working capital turnover, with the ratio consistently above 3 in the past five periods. This indicates the company's effectiveness in leveraging its working capital to support sales activities. However, management should continue monitoring and optimizing working capital utilization to sustain or further improve operational efficiency in generating revenue.