Regeneron Pharmaceuticals Inc (REGN)

Working capital turnover

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
Revenue (ttm) US$ in thousands 13,044,200 13,025,200 12,601,200 12,306,100 12,113,500 13,654,100 14,171,800 16,451,800 16,014,400 13,499,700 12,328,800 9,147,000 8,455,000 8,201,600 7,974,500 7,957,900 7,839,900 7,598,200 7,213,600 6,889,000
Total current assets US$ in thousands 19,479,200 18,634,800 16,923,000 16,909,200 15,884,100 15,428,600 15,529,900 14,306,000 14,014,900 13,775,400 13,337,600 10,055,100 9,779,100 9,097,600 7,860,200 8,644,100 7,689,100 7,109,100 6,651,000 6,928,600
Total current liabilities US$ in thousands 3,423,400 3,598,600 3,104,400 3,100,100 3,141,300 2,879,200 3,033,900 3,007,600 3,932,500 3,714,800 3,732,400 3,217,800 2,697,400 2,337,800 3,702,400 2,055,200 2,096,600 1,765,400 1,713,100 1,511,400
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

December 31, 2023 calculation

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

The working capital turnover ratio measures the efficiency of Regeneron Pharmaceuticals, Inc. in utilizing its working capital to generate revenue. A higher ratio indicates more effective management of working capital.

Looking at the data provided, we see a decreasing trend in the working capital turnover ratio from Q1 2022 to Q4 2023. This suggests that Regeneron Pharmaceuticals may not be efficiently utilizing its working capital to support its operations and generate revenue over this period.

The gradual decline in the working capital turnover ratio may be a cause of concern for the company, as it indicates slower turnover of working capital relative to sales. This could be attributed to various factors such as inventory management issues, slower collections from customers, or lengthening payment periods to suppliers.

Regeneron Pharmaceuticals may need to assess and improve its working capital management strategies to boost efficiency and optimize the utilization of its current assets and liabilities in order to enhance its financial performance and sustainability in the long run.


Peer comparison

Dec 31, 2023


See also:

Regeneron Pharmaceuticals Inc Working Capital Turnover (Quarterly Data)