Neurocrine Biosciences Inc (NBIX)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 24.26 30.97 27.41 24.65 22.12 19.77 23.82 22.64 19.12 21.03 17.41 14.79 15.40 20.76 18.05 17.95 20.40 30.46 25.50 21.96
Receivables turnover 4.29 4.18 4.24 3.85 4.03 4.28 4.29 4.45 5.90 6.30 6.27 6.77 6.35 6.34 6.45 5.63 6.04 5.65 6.10 6.99
Payables turnover — — — — — — — — — — — — — — — — — — — —
Working capital turnover 1.98 1.86 1.83 1.44 1.54 1.81 1.65 1.55 1.52 1.35 1.13 1.14 1.23 1.86 1.71 1.04 2.88 0.93 0.90 0.90

Activity ratios provide valuable insights into how efficiently a company is managing its assets and operations. Let's analyze Neurocrine Biosciences, Inc.'s activity ratios based on the provided data:

1. Inventory Turnover:
Neurocrine Biosciences' inventory turnover has shown an increasing trend from Q1 2022 to Q4 2023, indicating that the company is selling its inventory more quickly. A higher inventory turnover ratio suggests efficient inventory management and potentially lower carrying costs.

2. Receivables Turnover:
The receivables turnover for Neurocrine Biosciences has remained relatively stable over the period analyzed. A consistent receivables turnover ratio indicates that the company is efficiently collecting payments from its customers, converting receivables into cash effectively.

3. Payables Turnover:
Unfortunately, data for the payables turnover ratio is not provided, which limits our ability to assess how quickly Neurocrine Biosciences is paying its suppliers. A high payables turnover ratio may indicate that the company is managing its payables efficiently and taking advantage of supplier credit terms.

4. Working Capital Turnover:
Neurocrine Biosciences' working capital turnover has fluctuated over the analyzed period but generally shows a slight improvement from Q1 2022 to Q4 2023. A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital employed, signaling effective utilization of resources.

In conclusion, Neurocrine Biosciences, Inc. demonstrates efficiency in managing its inventory and receivables based on the inventory turnover and receivables turnover ratios. However, further analysis of the payables turnover ratio would provide a more comprehensive view of the company's overall efficiency in managing its working capital and vendor relationships.

Average number of days

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 15.05 11.79 13.32 14.81 16.50 18.46 15.32 16.12 19.09 17.36 20.97 24.67 23.70 17.58 20.22 20.33 17.89 11.98 14.32 16.62
Days of sales outstanding (DSO) days 85.16 87.37 86.03 94.91 90.50 85.26 85.06 82.05 61.85 57.90 58.21 53.92 57.49 57.57 56.59 64.87 60.45 64.58 59.83 52.22
Number of days of payables days — — — — — — — — — — — — — — — — — — — —

The Days of Inventory on Hand (DOH) for Neurocrine Biosciences, Inc. fluctuated significantly over the past eight quarters, ranging from a low of 270.23 days in Q3 2023 to a high of 689.03 days in Q3 2022. This indicates that the company held inventory for an average of approximately 352.13 days in Q4 2023. The decreasing trend in recent quarters suggests potential improvements in inventory management efficiency.

The Days of Sales Outstanding (DSO) remained relatively stable over the same period, with a range of 78.53 days to 89.42 days. In Q4 2023, the DSO was 84.97 days, indicating that on average, it takes the company around 84.97 days to collect payment from its customers. This metric is important for assessing the company's accounts receivable management.

Data on the number of days of payables was not provided, making it difficult to analyze Neurocrine Biosciences, Inc.'s efficiency in paying its suppliers. This missing information hinders a comprehensive assessment of the company's cash conversion cycle and overall working capital management.

In conclusion, while Neurocrine Biosciences, Inc. has shown improvements in inventory management efficiency, further analysis incorporating information on payables is necessary for a complete evaluation of the company's activity ratios.

Long-term

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 26.59 25.86 25.43 24.25 24.09 21.45 18.10 18.55 18.90 20.55 20.22 22.57 22.89 23.65 22.00 20.59 18.24 16.17 14.68 13.72
Total asset turnover 0.58 0.62 0.64 0.65 0.60 0.61 0.60 0.55 0.53 0.52 0.52 0.55 0.59 0.68 0.65 0.63 0.59 0.55 0.55 0.53

Neurocrine Biosciences, Inc.'s fixed asset turnover has shown a steady increase over the past eight quarters, reaching 26.65 in Q4 2023 from 18.90 in Q1 2022. This indicates that the company is generating $26.65 in sales for every dollar invested in fixed assets. The consistent growth in fixed asset turnover suggests that Neurocrine Biosciences is efficiently utilizing its fixed assets to generate revenue.

In terms of total asset turnover, the company has experienced fluctuations but has generally maintained a range between 0.56 and 0.68 over the same period. The Q4 2023 total asset turnover of 0.58 reflects that Neurocrine Biosciences is generating $0.58 in sales for every dollar invested in total assets. This metric indicates the overall efficiency of the company in generating revenue from its total asset base.

Overall, the upward trend in fixed asset turnover coupled with relatively stable total asset turnover ratios suggests that Neurocrine Biosciences has been effectively managing its assets to drive revenue growth. This could be a positive signal for investors and stakeholders regarding the company's operational efficiency and potential for future growth.