Supernus Pharmaceuticals Inc (SUPN)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	661,817	654,387	632,578	598,906	607,521	619,414	641,163	674,751	673,056	651,277	618,187	585,808	560,079	545,016	551,524	536,576	506,717	465,383	418,476	402,257
Total current assets	US$ in thousands	686,070	640,003	591,002	544,321	493,113	449,360	423,538	883,340	734,151	663,886	625,120	568,516	601,590	668,375	639,244	586,023	630,417	552,015	557,153	557,048
Total current liabilities	US$ in thousands	292,397	291,508	308,656	314,554	290,196	287,534	252,590	731,545	687,958	725,987	735,536	284,558	315,379	234,711	283,447	240,812	245,108	299,606	269,276	168,335
Working capital turnover		1.68	1.88	2.24	2.61	2.99	3.83	3.75	4.45	14.57	—	—	2.06	1.96	1.26	1.55	1.55	1.32	1.84	1.45	1.03

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $661,817K ÷ ($686,070K – $292,397K)
= 1.68

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. Looking at the trend for Supernus Pharmaceuticals Inc over the past few years, we can see fluctuations in the working capital turnover ratio.

From March 31, 2020, to December 31, 2021, the ratio generally increased from 1.03 to 1.96, indicating an improvement in the efficiency of working capital management during this period. However, there was a substantial spike in the ratio to 14.57 on December 31, 2022, which may suggest a significant change in the company's working capital management practices or a one-time event impacting working capital.

Subsequently, there was a sharp decline in the ratio to 4.45 on March 31, 2023, followed by a gradual decrease over the next few quarters. As of December 31, 2024, the ratio had decreased to 1.68, which may indicate potential challenges in effectively utilizing working capital to drive sales during this period.

Overall, the working capital turnover ratio for Supernus Pharmaceuticals Inc has shown variability over the years, with periods of both improvement and decline. Further analysis and comparison with industry peers may provide additional insights into the company's working capital management efficiency.