Regeneron Pharmaceuticals Inc (REGN)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	13,044,200	12,113,500	16,014,400	8,440,200	7,833,200
Total current assets	US$ in thousands	19,479,200	15,884,100	14,014,900	9,779,100	7,689,100
Total current liabilities	US$ in thousands	3,423,400	3,141,300	3,932,500	2,697,400	2,096,600
Working capital turnover		0.81	0.95	1.59	1.19	1.40

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $13,044,200K ÷ ($19,479,200K – $3,423,400K)
= 0.81

Regeneron Pharmaceuticals, Inc.'s working capital turnover has exhibited fluctuations over the past five years. The working capital turnover ratio measures a company's efficiency in generating revenue relative to its working capital level. A higher ratio suggests that the company is effectively utilizing its working capital to generate sales.

In 2021, the working capital turnover ratio was at its peak of 1.59, indicating that Regeneron Pharmaceuticals was generating $1.59 in revenue for every dollar of working capital invested. This suggests efficient management of its working capital resources to drive sales during that period.

However, the ratio experienced a decline in 2022 to 0.96 and further decreased to 0.82 in 2023. This downward trend may indicate potential inefficiencies in managing working capital to generate revenue. A declining working capital turnover ratio could imply that the company is struggling to convert its working capital into sales effectively.

It is essential for Regeneron Pharmaceuticals to closely monitor its working capital turnover ratio and assess its working capital management strategies to ensure optimal utilization of resources and improve efficiency in revenue generation.