Regeneron Pharmaceuticals Inc (REGN)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	1.04	1.10	0.99	1.18	0.73
Receivables turnover	2.29	2.30	2.27	2.65	2.71
Payables turnover	4.08	4.68	4.05	4.07	2.94
Working capital turnover	0.97	0.81	0.95	1.59	1.19

Regeneron Pharmaceuticals Inc's activity ratios provide insights into its efficiency in managing inventory, receivables, payables, and working capital.

1. Inventory Turnover: The inventory turnover ratio measures how efficiently the company is selling its inventory. Regeneron's ratio has shown fluctuation over the years, improving from 0.73 in 2020 to 1.18 in 2021, but then slightly decreasing to 1.04 by the end of 2024. This indicates that the company's management of inventory improved initially but may have faced challenges in recent years.

2. Receivables Turnover: The receivables turnover ratio indicates how quickly the company collects on its credit sales. Regeneron's ratio has remained relatively stable, ranging from 2.27 to 2.71 over the years. A consistent ratio suggests that the company has been efficient in collecting payments from its customers.

3. Payables Turnover: The payables turnover ratio measures how quickly the company is paying its suppliers. Regeneron's ratio has generally been increasing, from 2.94 in 2020 to 4.08 by the end of 2024. This suggests that the company has been taking longer to pay its suppliers over the years, which could indicate improved cash flow management.

4. Working Capital Turnover: The working capital turnover ratio shows how effectively the company is utilizing its working capital to generate revenue. Regeneron's ratio has varied, reaching a peak of 1.59 in 2021 but dropping to 0.81 by the end of 2023 before recovering slightly to 0.97 in 2024. A declining ratio indicates a decrease in revenue generated per unit of working capital, which could be a concern for the company's operational efficiency.

In conclusion, Regeneron Pharmaceuticals Inc has shown mixed performance in its activity ratios, with improvements in some areas like payables turnover but fluctuations in others like inventory turnover and working capital turnover. Continued monitoring and analysis of these ratios will be important for assessing the company's operational efficiency and financial health.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	349.51	331.61	366.96	310.15	499.83
Days of sales outstanding (DSO)	days	159.65	158.58	160.56	137.58	134.56
Number of days of payables	days	89.38	77.95	90.02	89.64	124.01

Regeneron Pharmaceuticals Inc's Days of Inventory on Hand (DOH) ratios have shown variability over the years, ranging from a high of 499.83 days in 2020 to a low of 310.15 days in 2021. The company's inventory turnover improved in 2021, indicating a more efficient management of inventory levels. However, in the following years, the DOH increased slightly but remained within a reasonable range, with the latest reported figure of 349.51 days in 2024.

In terms of Days of Sales Outstanding (DSO), Regeneron Pharmaceuticals Inc's collection period has been relatively stable, with DSO ranging from 134.56 days in 2020 to 159.65 days in 2024. This suggests that the company has been consistent in managing its accounts receivable turnover, but there was a slight increase in the collection period in the latest year.

The Number of Days of Payables for Regeneron Pharmaceuticals Inc decreased significantly from 124.01 days in 2020 to 89.38 days in 2024. This reduction indicates that the company has been paying its suppliers more promptly, which could improve its relationship with suppliers and potentially negotiate better terms.

Overall, while Regeneron Pharmaceuticals Inc has shown some variability in its activity ratios over the years, the company has demonstrated efforts to manage its inventory, collection, and payment processes efficiently. It is crucial for the company to continue monitoring and optimizing these activity ratios to ensure strong financial health and operational effectiveness.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	3.54	3.68	3.85	4.60	2.62
Total asset turnover	0.38	0.39	0.41	0.63	0.49

Regeneron Pharmaceuticals Inc's fixed asset turnover has shown a positive trend over the years, increasing from 2.62 in December 31, 2020, to 3.54 in December 31, 2024. This indicates that the company has been able to generate more revenue relative to its investment in fixed assets, such as property, plant, and equipment, which is a positive sign of efficiency.

On the other hand, the total asset turnover ratio has fluctuated over the same period, with a peak of 0.63 in December 31, 2021, and a low of 0.38 in December 31, 2024. This implies that the company's ability to generate sales from its total assets has been inconsistent. A lower total asset turnover ratio could suggest that the company may not be utilizing its assets effectively to generate revenue.

Overall, while the fixed asset turnover ratio indicates that Regeneron Pharmaceuticals has been managing its fixed assets efficiently to generate sales, the fluctuating total asset turnover ratio highlights a need for the company to focus on optimizing the utilization of its total assets to improve overall performance.