Neurocrine Biosciences Inc (NBIX)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 2,355,100 1,883,200 1,411,600 1,107,700 994,700
Total current assets US$ in thousands 1,724,700 1,607,000 1,453,500 972,800 1,016,200
Total current liabilities US$ in thousands 507,700 654,800 537,700 245,800 186,500
Working capital turnover 1.94 1.98 1.54 1.52 1.20

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,355,100K ÷ ($1,724,700K – $507,700K)
= 1.94

Neurocrine Biosciences Inc's working capital turnover has shown an increasing trend over the past five years, indicating improved efficiency in utilizing its working capital to generate sales. The ratio has progressed from 1.20 in December 2020 to 1.94 in December 2024. This suggests that the company's ability to generate revenue from its working capital has strengthened, reflecting effective management of its current assets and liabilities. The rising trend signifies that Neurocrine Biosciences Inc has been able to convert its working capital into sales at a more rapid pace, which can positively impact its overall financial performance and liquidity position.