Regenxbio Inc (RGNX)

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	85,585	89,565	82,833	89,765	89,470	395,745	424,505	432,813	446,605	134,740	275,433	273,347	271,089	261,412	95,283	71,153	44,415	73,424	54,848	86,998
Total current assets	US$ in thousands	334,971	365,838	378,809	389,202	415,976	436,639	465,424	446,877	518,826	410,164	437,387	498,638	531,197	386,950	329,082	338,233	345,032	360,228	359,492	303,884
Total current liabilities	US$ in thousands	130,272	127,346	117,893	112,334	130,434	123,548	114,556	119,937	130,472	106,771	91,554	83,961	81,447	63,613	40,203	31,789	33,676	31,345	24,661	21,390
Working capital turnover		0.42	0.38	0.32	0.32	0.31	1.26	1.21	1.32	1.15	0.44	0.80	0.66	0.60	0.81	0.33	0.23	0.14	0.22	0.16	0.31

December 31, 2023 calculation

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

The working capital turnover ratio for Regenxbio Inc has exhibited fluctuating trends over the past eight quarters. In Q4 2023, the working capital turnover stood at 0.44, showing a slight improvement from the previous quarter's ratio of 0.42. However, it is still lower compared to the ratios reported in Q2 and Q3 of 2022, indicating that the company may be less efficient in utilizing its working capital to generate revenue.

The significant drop in working capital turnover ratios during the first half of 2023 (Q2 and Q3) compared to the exceptionally high ratios of Q2 and Q3 of 2022 is a point of concern. A working capital turnover ratio below 1 suggests that the company may not be effectively leveraging its working capital to drive sales, which could potentially indicate inefficiencies in the management of current assets and liabilities.

Overall, a declining trend in working capital turnover ratios from the highs of 2022 to the lower levels seen in 2023 may signal a need for Regenxbio Inc to focus on optimizing its working capital management strategies to improve operational efficiency and financial performance.