Quidel Corporation (QDEL)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,782,900	2,993,500	3,266,000	1,698,550	1,661,670
Total current assets	US$ in thousands	1,218,900	1,310,500	1,575,100	1,440,310	1,142,400
Total current liabilities	US$ in thousands	998,800	833,800	1,007,000	323,520	336,961
Working capital turnover		12.64	6.28	5.75	1.52	2.06

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,782,900K ÷ ($1,218,900K – $998,800K)
= 12.64

Quidel Corporation's working capital turnover has shown a fluctuating trend over the period from December 31, 2020, to December 31, 2024. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In 2020, the working capital turnover was 2.06, suggesting that for every dollar of working capital, the company generated $2.06 of sales. However, this ratio decreased to 1.52 by the end of 2021, indicating a decrease in efficiency in utilizing working capital for revenue generation.

There was a significant improvement in 2022 and 2023, with the working capital turnover ratios rising to 5.75 and 6.28, respectively. This sharp increase reflects enhanced efficiency in managing working capital to drive sales growth.

By the end of 2024, the working capital turnover ratio surged to 12.64, indicating a substantial improvement in optimizing working capital resources for generating sales revenue efficiently. This remarkable increase suggests that Quidel Corporation has been able to leverage its working capital effectively in driving business operations and generating revenue.

Overall, the increasing trend in the working capital turnover ratio from 2020 to 2024 indicates an enhancement in the company's operational efficiency and effectiveness in utilizing its working capital to support its sales activities.