Myriad Genetics Inc (MYGN)

Working capital turnover

		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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	794,900	766,400	745,400	731,500	696,200	691,900	675,200	820,600	831,200	839,900	846,300	666,200	590,100	564,400	586,600	627,900	750,000	801,700	822,500	840,100
Total current assets	US$ in thousands	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	394,500	331,700	355,200	365,300	329,500	348,600
Total current liabilities	US$ in thousands	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	133,700	147,000	113,200	112,400	115,400	117,800
Working capital turnover		5.57	5.31	4.73	13.04	9.51	5.85	4.91	3.68	3.36	3.21	3.02	2.25	2.20	3.13	2.25	3.40	3.10	3.17	3.84	3.64

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $794,900K ÷ ($291,600K – $148,900K)
= 5.57

The working capital turnover of Myriad Genetics Inc has shown fluctuating trends over the past few quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.

The data reveals that the working capital turnover has ranged from a low of 2.20 to a high of 13.04 over the periods analyzed. A higher working capital turnover ratio generally indicates that the company is effectively using its current assets to support sales. In contrast, a lower ratio may suggest inefficiency in managing working capital.

Notably, the working capital turnover ratio significantly jumped from 5.85 in March 2023 to 13.04 in September 2023, indicating a substantial improvement in working capital utilization efficiency during that period. However, this spike was followed by a decline in subsequent quarters.

Overall, while there have been fluctuations in the working capital turnover ratio, it is essential for Myriad Genetics Inc to sustain a balance between efficient working capital management and supporting business operations to ensure long-term financial health and sustainability.