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.