Neurocrine Biosciences Inc (NBIX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 24.30 | 22.12 | 19.12 | 15.48 | 20.47 |
| Receivables turnover | 4.29 | 4.03 | 5.90 | 6.19 | 5.97 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.98 | 1.54 | 1.52 | 1.20 | 2.85 |
Neurocrine Biosciences, Inc.'s activity ratios provide insights into the efficiency of the company's operations in managing its assets and liabilities.
1. Inventory Turnover:
- Neurocrine Biosciences' inventory turnover has shown a fluctuating trend over the years, improving from 0.43 in 2019 to 1.04 in 2023. This indicates that the company is selling its inventory more frequently in recent years, which is a positive sign of efficient inventory management.
2. Receivables Turnover:
- The receivables turnover ratio has been relatively stable over the years, ranging from 4.25 in 2022 to 6.66 in 2020. This ratio signifies how effectively the company collects outstanding payments from its customers. A higher ratio suggests a quicker collection of receivables.
3. Payables Turnover:
- The data does not provide information on payables turnover for Neurocrine Biosciences, making it difficult to assess how efficiently the company is managing its trade payables.
4. Working Capital Turnover:
- The working capital turnover ratio has fluctuated over the years, with a notable decrease in 2022 compared to 2019. A higher working capital turnover ratio typically indicates that the company is generating sales more efficiently relative to its working capital.
Overall, Neurocrine Biosciences, Inc.'s activity ratios suggest improvements in inventory turnover and stable performance in receivables turnover. The company should continue to monitor these ratios to ensure efficient management of its assets and liabilities. However, the lack of data on payables turnover limits a comprehensive assessment of the company's overall operational efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.02 | 16.50 | 19.09 | 23.59 | 17.83 |
| Days of sales outstanding (DSO) | days | 85.14 | 90.50 | 61.85 | 59.00 | 61.10 |
| Number of days of payables | days | — | — | — | — | — |
Days of inventory on hand (DOH) for Neurocrine Biosciences, Inc. have shown a decreasing trend over the last five years, indicating more efficient management of inventory levels. The company has reduced the number of days it holds inventory from 849.50 days in 2019 to 352.13 days in 2023.
Days of sales outstanding (DSO) have varied over the years but have remained relatively stable. This ratio measures the average number of days it takes for the company to collect revenue after a sale. Neurocrine Biosciences, Inc. has consistently collected revenue within approximately 54 to 85 days over the last five years.
Information on the number of days of payables is not provided for analysis, but this ratio would typically indicate how long it takes the company to pay its suppliers. Without this data, it is not possible to assess the efficiency of Neurocrine Biosciences, Inc. in managing its payables.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 26.60 | 24.09 | 18.90 | 22.30 | 18.05 |
| Total asset turnover | 0.58 | 0.60 | 0.53 | 0.57 | 0.58 |
Neurocrine Biosciences, Inc.'s long-term activity ratios indicate how effectively the company is utilizing its assets to generate revenue over the years. The fixed asset turnover ratio has shown a consistently increasing trend from 2019 to 2023, indicating that the company is generating more revenue per dollar invested in fixed assets. This suggests improved efficiency in utilizing fixed assets to generate sales.
On the other hand, the total asset turnover ratio has fluctuated over the same period, with a slight decline in 2023 compared to the previous year. This indicates that the company's ability to generate sales from all its assets has been inconsistent, possibly due to changes in the composition of its asset base.
Overall, while Neurocrine Biosciences has managed to improve the efficiency of its fixed assets in generating revenue, it may need to focus on optimizing the utilization of its total assets to sustain its growth and profitability in the long run.