Quidel Corporation (QDEL)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,780,900	2,815,700	2,832,600	2,861,400	2,997,800	3,121,700	3,161,500	3,109,800	3,265,960	3,036,327	2,762,263	2,325,473	1,698,551	1,870,887	1,837,209	1,862,353	1,661,668	1,004,643	655,077	561,575
Total current assets	US$ in thousands	1,218,900	1,412,600	1,341,300	1,212,400	1,310,500	1,371,300	1,308,100	1,498,900	1,575,100	1,445,200	1,559,100	2,113,650	1,440,310	1,149,060	857,946	1,282,710	1,142,400	560,936	296,937	286,479
Total current liabilities	US$ in thousands	998,800	1,027,300	932,400	779,800	833,800	860,000	790,000	907,800	1,007,000	872,700	900,000	492,656	323,520	297,088	269	366,936	336,961	207,886	182,978	136,196
Working capital turnover		12.63	7.31	6.93	6.61	6.29	6.11	6.10	5.26	5.75	5.30	4.19	1.43	1.52	2.20	2.14	2.03	2.06	2.85	5.75	3.74

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,780,900K ÷ ($1,218,900K – $998,800K)
= 12.63

The working capital turnover ratio for Quidel Corporation has shown fluctuations over the period under consideration. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to support its operations and sales activities.

In Q1 2020, the working capital turnover ratio was 3.74, which increased to 5.75 by Q2 2020, suggesting a significant improvement in the efficiency of working capital utilization. However, the ratio decreased in the following quarters, reaching a low of 1.43 in Q1 2022. This decline may indicate potential inefficiencies in managing working capital during that period.

From Q2 2022 onwards, the working capital turnover ratio started to show a consistent upward trend, reflecting an improvement in the company's ability to generate sales relative to its working capital. By Q4 2024, the ratio had surged to 12.63, indicating a substantial enhancement in working capital efficiency.

Overall, the increasing trend in the working capital turnover ratio since Q2 2022 suggests that Quidel Corporation has been managing its working capital more effectively, which bodes well for its operational efficiency and financial performance.