Pacira BioSciences, Inc. (PCRX)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	700,966	694,957	690,310	681,754	674,978	665,689	669,229	669,173	666,823	654,062	614,318	580,497	541,533	510,887	500,649	440,564	427,221	421,097	408,298	435,397
Total current assets	US$ in thousands	745,130	689,969	632,214	543,113	509,994	447,255	429,324	376,114	498,334	533,411	526,210	667,018	866,048	822,352	792,579	720,247	651,623	658,520	455,823	431,594
Total current liabilities	US$ in thousands	309,920	306,401	92,690	93,444	97,383	93,661	108,912	98,698	147,774	131,526	133,179	305,073	521,118	225,788	228,693	232,084	253,328	86,272	70,583	80,313
Working capital turnover		1.61	1.81	1.28	1.52	1.64	1.88	2.09	2.41	1.90	1.63	1.56	1.60	1.57	0.86	0.89	0.90	1.07	0.74	1.06	1.24

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $700,966K ÷ ($745,130K – $309,920K)
= 1.61

Pacira BioSciences, Inc.'s working capital turnover has fluctuated over the years based on the provided data. The working capital turnover ratio reflects how efficiently the company is utilizing its working capital to generate sales revenue.

From March 31, 2020, to September 30, 2021, the working capital turnover ratio declined gradually from 1.24 to 0.86. A lower ratio may indicate inefficiency in managing working capital or slowing sales growth relative to the invested working capital.

From December 31, 2021, to March 31, 2024, there was a mixed trend in the ratio, fluctuating between 1.57 and 2.41. A higher turnover ratio is generally preferable as it suggests that the company is effectively utilizing its working capital to generate sales.

In the latter half of 2024, the working capital turnover ratio decreased from 1.81 to 1.61. This decrease could potentially signal a decrease in sales turnover relative to the working capital invested during that period.

Overall, it is crucial for Pacira BioSciences, Inc. to carefully manage its working capital to maintain an optimal balance between liquidity and efficiency in generating sales revenue. Continual monitoring and analysis of the working capital turnover ratio can provide insights into the company's operational efficiency and financial health.