Regeneron Pharmaceuticals Inc (REGN)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	1.10	0.75	0.75	0.71	0.65	0.98	1.02	1.17	1.17	0.88	0.83	0.66	0.73	0.95	1.10	1.27	1.36	1.30	1.28	1.35
Receivables turnover	2.30	2.33	2.46	2.40	2.27	2.46	2.75	3.40	2.65	2.48	1.76	2.19	2.72	2.31	3.35	3.14	3.32	3.20	3.32	3.42
Payables turnover	4.68	3.60	3.42	2.86	2.65	—	—	—	4.05	—	—	—	2.94	—	—	—	4.59	—	—	—
Working capital turnover	0.81	0.87	0.91	0.89	0.95	1.09	1.13	1.46	1.59	1.34	1.28	1.34	1.19	1.21	1.92	1.21	1.40	1.42	1.46	1.27

Regeneron Pharmaceuticals, Inc.'s activity ratios provide insights into how efficiently the company is managing its assets and liabilities to generate revenue.

1. Inventory turnover: Regeneron's inventory turnover has been relatively low, consistent around 0.3 to 0.4 over the past few quarters. This indicates that the company is selling its inventory at a slower pace compared to its peers in the industry.

2. Receivables turnover: The receivables turnover ratio has been stable around 2.3 to 2.5, suggesting that Regeneron is able to collect its accounts receivable efficiently. A consistent ratio indicates that the company is effectively managing its credit sales and collecting payments from customers.

3. Payables turnover: The payables turnover ratio has shown some fluctuation but has generally been between 1.3 to 1.7. A lower payables turnover ratio implies that the company is taking longer to pay its suppliers, which may indicate favorable credit terms or cash flow management.

4. Working capital turnover: Regeneron's working capital turnover has been decreasing gradually from 1.46 in Q1 2022 to 0.82 in Q4 2023. This indicates that the company is generating less revenue per dollar of working capital invested, which may suggest inefficiencies in managing its current assets and liabilities.

Overall, the analysis of Regeneron Pharmaceuticals, Inc.'s activity ratios highlights areas where the company may need to focus on improving efficiency, such as in managing inventory levels, optimizing accounts receivable collection, and effectively utilizing working capital to drive revenue growth.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	331.61	484.22	489.44	516.47	561.08	371.81	356.36	311.79	311.42	416.23	440.41	549.49	499.83	385.30	332.13	288.13	269.16	280.93	284.09	269.65
Days of sales outstanding (DSO)	days	158.58	156.49	148.34	151.82	160.56	148.32	132.93	107.36	137.58	147.41	207.20	166.52	134.32	158.13	108.94	116.11	109.90	114.00	109.91	106.81
Number of days of payables	days	77.95	101.42	106.82	127.69	137.64	—	—	—	90.01	—	—	—	124.01	—	—	—	79.50	—	—	—

Regeneron Pharmaceuticals, Inc.'s activity ratios indicate the efficiency of the company in managing its inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, inventory sits on the company's shelves before being sold.
- Regeneron's DOH has shown an increasing trend recently, reaching a peak of over 1,100 days in Q1 2023. This suggests a potential issue with managing and turning over inventory efficiently.
- The company might have excess inventory levels, which could tie up valuable resources and lead to higher holding costs.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for the company to collect payment after making a sale.
- Regeneron's DSO has fluctuated over the quarters, but overall, it has remained relatively stable.
- Higher DSO values may indicate delayed payments or credit terms extended to customers, which could impact cash flow and liquidity.

3. Number of Days of Payables:
- This ratio shows the average number of days the company takes to pay its suppliers.
- Regeneron's days of payables have also shown variability, with a significant increase in Q1 2023 compared to the previous quarters.
- Longer payment terms could be a strategic move to manage cash flow, but it may also strain supplier relationships if not managed effectively.

Overall, Regeneron Pharmaceuticals, Inc. should focus on optimizing its inventory management to reduce holding costs and improve cash flow. Additionally, balancing DSO and days of payables to maintain healthy working capital cycles is crucial for sustaining financial stability and supplier relationships. Further analysis of the underlying reasons behind these fluctuations is recommended to make informed operational decisions.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	3.68	3.25	3.21	3.17	3.85	3.69	3.90	4.63	4.60	3.98	3.67	2.80	2.62	2.61	2.63	2.70	2.71	2.74	2.70	2.64
Total asset turnover	0.39	0.40	0.41	0.41	0.41	0.49	0.52	0.62	0.63	0.57	0.57	0.51	0.49	0.51	0.55	0.51	0.53	0.55	0.55	0.54

Regeneron Pharmaceuticals, Inc.'s fixed asset turnover has been relatively stable over the past two years, ranging between 3.16 and 4.64. This indicates that the company generates revenues efficiently from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also been relatively steady, with values ranging from 0.40 to 0.63. This ratio measures how efficiently the company is using all its assets to generate revenue. A lower total asset turnover ratio may imply that the company is not utilizing its total assets as efficiently as its fixed assets.

Overall, Regeneron Pharmaceuticals, Inc. seems to be effectively utilizing its fixed assets to generate sales, as indicated by the consistent and relatively high fixed asset turnover ratios. However, there may be room for improvement in optimizing the utilization of its total assets to generate revenue, as reflected by the lower but stable total asset turnover ratios.