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.