Pacira Pharmaceuticals Inc (PCRX)
Working capital turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 636,266 | 626,907 | 541,533 | 429,647 | 421,026 |
Total current assets | US$ in thousands | 509,994 | 498,334 | 866,048 | 651,623 | 408,557 |
Total current liabilities | US$ in thousands | 97,383 | 147,774 | 521,118 | 253,328 | 107,673 |
Working capital turnover | 1.54 | 1.79 | 1.57 | 1.08 | 1.40 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $636,266K ÷ ($509,994K – $97,383K)
= 1.54
Pacira BioSciences Inc's working capital turnover has fluctuated over the past five years. In 2023, the working capital turnover ratio decreased to 1.64 from 1.90 in 2022, indicating a decrease in the efficiency of the company in utilizing its working capital to generate sales. This could suggest that Pacira BioSciences Inc may be facing challenges in efficiently managing its current assets and liabilities to support its operations.
Comparing 2023 to 2021, the working capital turnover ratio increased from 1.57 to 1.64. This signifies an improvement in the company's ability to generate sales revenue relative to its working capital levels. However, there was a significant improvement from 2020 to 2021 when the ratio increased from 1.08 to 1.57, indicating a substantial enhancement in operational efficiency during that period.
While the working capital turnover ratio increased in 2021 and declined in 2023, it remains important for Pacira BioSciences Inc to focus on optimizing its working capital management to ensure a balance between liquidity and operational efficiency. Further analysis of the company's current assets and liabilities management may help in identifying areas for improvement in the utilization of working capital to support business activities effectively.
Peer comparison
Dec 31, 2023