Progyny Inc (PGNY)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,091,902 | 1,036,101 | 959,749 | 874,714 | 787,727 | 700,482 | 617,337 | 551,196 | 501,082 | 473,730 | 450,213 | 385,920 | 344,979 | 309,953 | 272,210 | |||
| Total current assets | US$ in thousands | 640,407 | 611,272 | 561,130 | 527,079 | 433,856 | 401,866 | 356,378 | 309,026 | 258,539 | 254,424 | 238,491 | 227,799 | 190,222 | 184,590 | 159,705 | 161,938 | 132,444 | 53,338 |
| Total current liabilities | US$ in thousands | 185,950 | 193,419 | 193,900 | 206,867 | 159,536 | 156,868 | 144,897 | 128,717 | 98,824 | 104,484 | 98,785 | 100,998 | 77,786 | 74,166 | 57,668 | 59,056 | 36,163 | 57,564 |
| Working capital turnover | 2.40 | 2.48 | 2.61 | 2.73 | 2.87 | 2.86 | 2.92 | 3.06 | 3.14 | 3.16 | 3.22 | 3.04 | 3.07 | 2.81 | 2.67 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,091,902K ÷ ($640,407K – $185,950K)
= 2.40
Progyny Inc's working capital turnover has shown a decreasing trend over the past year, indicating that the company is becoming less efficient in managing its working capital. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher ratio is generally favorable as it indicates that the company is generating more sales with less investment in working capital.
In Q4 2022, Progyny Inc had a working capital turnover of 2.87, which decreased to 2.73 in Q1 2023, 2.61 in Q2 2023, and further to 2.47 in Q3 2023. The trend continued in Q4 2023 with a working capital turnover of 2.40, indicating a decline in efficiency over time.
A decreasing working capital turnover ratio may suggest inefficiencies in managing inventory, receivables, or payables, which could lead to reduced profitability and cash flow problems. Progyny Inc should closely monitor its working capital turnover and take actions to improve efficiency in managing its working capital to drive better financial performance in the future.
Peer comparison
Dec 31, 2023