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)