Neurocrine Biosciences Inc (NBIX)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,883,200	1,411,600	1,107,700	994,700	756,124
Total current assets	US$ in thousands	1,607,000	1,453,500	972,800	1,016,200	831,000
Total current liabilities	US$ in thousands	654,800	537,700	245,800	186,500	565,300
Working capital turnover		1.98	1.54	1.52	1.20	2.85

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,883,200K ÷ ($1,607,000K – $654,800K)
= 1.98

Neurocrine Biosciences, Inc.'s working capital turnover has shown fluctuations over the past five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.

In 2019, the company had a high working capital turnover of 2.97, suggesting that for every dollar of working capital, the company generated $2.97 in sales. However, this ratio decreased in 2020 to 1.26, indicating a decline in efficiency in utilizing working capital to generate sales.

Subsequently, there was an improvement in 2021 and 2022, with the turnover reaching 1.56 and 1.63, respectively, reflecting better utilization of working capital. In 2023, the ratio further increased to 1.98, indicating a continued improvement in efficiency in converting working capital into sales revenue.

Overall, the increasing trend in working capital turnover from 2020 to 2023 suggests that Neurocrine Biosciences, Inc. has been managing its working capital more effectively to generate sales, which can be a positive sign for the company's financial health and operational efficiency.