Myriad Genetics Inc (MYGN)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	837,600	823,600	802,200	774,200	753,200	734,400	698,900	694,700	678,400	661,400	672,300	682,400	690,600	684,400	662,300	566,100	557,000	597,500	638,600	760,800
Total current assets	US$ in thousands	298,000	293,200	291,600	290,300	313,600	265,400	294,300	261,600	274,600	352,300	367,100	427,400	484,800	498,900	538,900	329,200	389,400	394,500	331,700	355,200
Total current liabilities	US$ in thousands	164,100	154,300	148,900	146,100	155,900	209,300	221,100	143,300	137,200	129,100	119,700	166,000	204,300	203,200	271,000	149,000	145,900	133,700	147,000	113,200
Working capital turnover		6.26	5.93	5.62	5.37	4.78	13.09	9.55	5.87	4.94	2.96	2.72	2.61	2.46	2.31	2.47	3.14	2.29	2.29	3.46	3.14

December 31, 2024 calculation

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

The working capital turnover ratio for Myriad Genetics Inc has shown fluctuation over the period from March 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company is utilizing its working capital to generate sales.

The trend in the working capital turnover ratio reveals that the company's efficiency in utilizing its working capital varied significantly. The ratio started at 3.14 on March 31, 2020, increased to 3.46 on June 30, 2020, before dropping to 2.29 by September 30, 2020. This suggests that the company initially managed its working capital effectively, but then faced challenges in generating sales relative to its working capital.

Throughout the subsequent quarters, the ratio fluctuated between 2.29 and 3.14, indicating inconsistencies in the company's ability to convert its working capital into revenue. However, from December 31, 2022, the working capital turnover ratio experienced a notable improvement, reaching a peak of 13.09 on September 30, 2023. This significant increase suggests that the company became more efficient in generating sales from its working capital during this period.

The ratio then declined to 4.78 by December 31, 2023, but gradually increased again to reach 6.26 by December 31, 2024. This improvement in the working capital turnover ratio indicates that the company implemented strategies to better utilize its working capital in generating revenue.

Overall, the fluctuation in Myriad Genetics Inc's working capital turnover ratio over the analyzed period highlights the company's evolving efficiency in utilizing its working capital to drive sales. It is crucial for the company to maintain a balance between managing its working capital effectively and maximizing sales generation to ensure continued financial health and operational efficiency.