Neurocrine Biosciences Inc (NBIX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 18.20 | 24.30 | 22.12 | 19.12 | 15.48 |
| Receivables turnover | 4.77 | 4.29 | 4.03 | 5.90 | 6.19 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.94 | 1.98 | 1.54 | 1.52 | 1.20 |
Neurocrine Biosciences Inc's activity ratios depict the company's efficiency in managing its operational assets. The inventory turnover ratio has shown a consistent improvement from 15.48 in 2020 to 18.20 in 2024, indicating that the company is selling its inventory more frequently each year. This suggests effective inventory management and possibly a higher demand for Neurocrine's products.
On the other hand, the receivables turnover ratio has been fluctuating, decreasing from 6.19 in 2020 to 4.77 in 2024. This trend implies that Neurocrine Biosciences is taking longer to collect payments from its customers over the years, which could potentially lead to cash flow challenges if left unaddressed.
The payables turnover ratio, however, is not provided in the data, which makes it difficult to assess how well Neurocrine is managing its trade payables.
The working capital turnover ratio has shown a positive trend, increasing from 1.20 in 2020 to 1.94 in 2024. This indicates that Neurocrine Biosciences is generating more revenue relative to its working capital, reflecting efficient utilization of its current assets to generate sales.
Overall, while Neurocrine Biosciences Inc has shown improvements in inventory turnover and working capital turnover, it may need to focus on streamlining its receivables turnover to enhance its overall operational efficiency and cash flow management.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 20.05 | 15.02 | 16.50 | 19.09 | 23.59 |
| Days of sales outstanding (DSO) | days | 76.48 | 85.14 | 90.50 | 61.85 | 59.00 |
| Number of days of payables | days | — | — | — | — | — |
Neurocrine Biosciences Inc has shown a declining trend in its Days of Inventory on Hand (DOH) from 23.59 days in December 2020 to 15.02 days in December 2023, which indicates the company is managing its inventory efficiently over this period. However, the DOH increased to 20.05 days by December 2024, suggesting a potential slowdown in inventory turnover efficiency.
In terms of Days of Sales Outstanding (DSO), the company experienced an increase from 59.00 days in December 2020 to 85.14 days in December 2023, indicating that it takes longer to collect payment from customers. However, there was an improvement to 76.48 days by December 2024, which is still higher than the initial value.
The Number of Days of Payables data is not provided, which makes it difficult to assess the company's payment practices and overall liquidity management.
Overall, Neurocrine Biosciences Inc needs to focus on maintaining or improving its inventory turnover efficiency and reducing the days of sales outstanding to optimize working capital management and enhance liquidity.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 28.51 | 26.60 | 24.09 | 18.90 | 22.30 |
| Total asset turnover | 0.63 | 0.58 | 0.60 | 0.53 | 0.57 |
The analysis of Neurocrine Biosciences Inc's long-term activity ratios, specifically looking at fixed asset turnover and total asset turnover, reveals some key insights.
1. Fixed Asset Turnover: This ratio measures how efficiently the company is generating revenue from its investment in fixed assets. From 2020 to 2024, Neurocrine Biosciences Inc's fixed asset turnover improved significantly, rising from 22.30 to 28.51. This indicates that the company has become more efficient in utilizing its fixed assets to generate sales over the years, which is a positive sign of operational efficiency.
2. Total Asset Turnover: Total asset turnover ratio measures the efficiency with which the company is using its total assets to generate revenue. Neurocrine Biosciences Inc's total asset turnover fluctuated between 0.53 and 0.63 during the same period. Although there were some fluctuations, the overall trend shows a relatively stable performance in utilizing total assets to generate sales.
In summary, Neurocrine Biosciences Inc has shown strong improvement in its fixed asset turnover, indicating increased efficiency in utilizing fixed assets to generate revenue. While the total asset turnover ratio fluctuated, it remained relatively stable, suggesting that the company has maintained a consistent level of efficiency in using its total assets to generate sales over the analyzed period.