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.