Penumbra Inc (PEN)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,058,520	847,133	747,590	560,412	547,405
Total current assets	US$ in thousands	915,402	755,699	681,474	617,702	463,134
Total current liabilities	US$ in thousands	151,144	144,932	123,197	105,932	91,048
Working capital turnover		1.39	1.39	1.34	1.10	1.47

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,058,520K ÷ ($915,402K – $151,144K)
= 1.39

The working capital turnover for Penumbra Inc has shown some fluctuation over the past five years. In 2023 and 2022, the company had a working capital turnover ratio of 1.39, indicating that it generated $1.39 in revenue for every dollar of working capital invested. This suggests a consistent performance in efficiently utilizing its working capital to generate sales revenue.

In 2021, the working capital turnover ratio decreased slightly to 1.34, which may imply a slight slowdown in the company's efficiency in utilizing its working capital to generate revenue compared to the previous years.

In 2020, the working capital turnover ratio further decreased to 1.10, indicating a potential decrease in the company's efficiency in generating sales revenue relative to the working capital invested. This could be a cause for concern as it suggests a possible inefficiency in managing and utilizing its working capital effectively.

However, in 2019, Penumbra Inc experienced a significant improvement in its working capital turnover ratio to 1.47, reflecting a higher efficiency in utilizing its working capital to generate revenue compared to the previous years.

Overall, while the company has demonstrated relatively stable working capital turnover ratios in recent years, the fluctuations in the ratios highlight the importance of closely monitoring the efficiency of Penumbra Inc in utilizing its working capital to drive sales revenue and overall financial performance.