Protagonist Therapeutics Inc (PTGX)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	60,137	26,704	27,448	27,534	118
Total current assets	US$ in thousands	355,577	243,077	340,736	315,606	145,311
Total current liabilities	US$ in thousands	21,274	31,179	44,016	40,241	35,406
Working capital turnover		0.18	0.13	0.09	0.10	0.00

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $60,137K ÷ ($355,577K – $21,274K)
= 0.18

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. In the case of Protagonist Therapeutics Inc, there has been a noticeable improvement in the working capital turnover over the past five years. The ratio has shown an increasing trend, indicating that the company has become more efficient in converting its working capital into sales.

In 2023, the working capital turnover ratio reached 0.18, a significant increase from 0.13 in 2022, 0.09 in 2021, and 0.10 in 2020. It is noteworthy that in 2019, the ratio was unusually low at 0.00, which may have indicated inefficiencies in working capital management during that period.

The upward trend in the working capital turnover ratio suggests that Protagonist Therapeutics Inc has been able to optimize its working capital resources effectively to support its sales activities. This improvement may be attributed to better inventory management, receivables collection, and payables management. It indicates that the company is becoming more adept at using its current assets efficiently to drive revenue growth.