Regenxbio Inc (RGNX)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	85,585	89,470	446,639	291,249	59,562
Total current assets	US$ in thousands	334,971	415,976	518,826	531,197	345,032
Total current liabilities	US$ in thousands	130,272	130,434	130,472	81,447	33,676
Working capital turnover		0.42	0.31	1.15	0.65	0.19

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $85,585K ÷ ($334,971K – $130,272K)
= 0.42

Regenxbio Inc's working capital turnover has fluctuated over the past five years, indicating varying efficiency in utilizing its working capital to generate revenue. The working capital turnover ratio measures how effectively a company generates revenue relative to its working capital. In 2021, the ratio peaked at 1.21, suggesting that Regenxbio was able to generate $1.21 in revenue for every dollar of working capital invested, reflecting strong efficiency. However, this efficiency decreased in 2022 and 2023, with ratios of 0.39 and 0.44 respectively, indicating a decline in revenue generation relative to working capital.

The lower ratios in 2020 and earlier years (0.34 in 2020 and 0.11 in 2019) suggest decreased efficiency in utilizing working capital to generate revenue during those periods. A working capital turnover ratio below 1 may indicate inefficiency in utilizing working capital to generate sales. It is important for Regenxbio to improve this ratio by better managing its working capital to enhance revenue generation efficiency and overall financial performance.