TG Therapeutics Inc (TGTX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.75 | 3.44 | — | — | — |
| Receivables turnover | 2.51 | 4.33 | — | 4.82 | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 0.68 | 0.84 | 0.02 | 0.03 | 0.00 |
The activity ratios of TG Therapeutics Inc provide insight into the company's efficiency in managing its operations and working capital.
1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory within a given period. TG Therapeutics' inventory turnover was not available for the years 2020 and 2021. In 2023, the ratio was 3.44, indicating that the company's inventory turned over approximately 3.44 times during that year. However, the ratio declined to 1.75 in 2024, possibly indicating a slower movement of inventory.
2. Receivables Turnover: The receivables turnover ratio shows how efficiently a company collects payments from its customers. In 2021, TG Therapeutics had a receivables turnover of 4.82, implying that the company collected payments from customers almost 5 times during the year. The ratio decreased to 4.33 in 2023 and further dropped to 2.51 in 2024, suggesting a potential delay in collecting receivables.
3. Payables Turnover: Unfortunately, the data provided does not include the payables turnover ratio for TG Therapeutics Inc for any of the years. This ratio would have shown how effectively the company manages its accounts payable.
4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently the company generates revenue relative to its working capital. In 2023, TG Therapeutics had a working capital turnover of 0.84, implying that the company generated revenue equivalent to 84% of its average working capital during the year. The ratio decreased slightly to 0.68 in 2024, indicating a slightly lower efficiency in generating revenue relative to working capital.
Overall, the analysis of TG Therapeutics Inc's activity ratios suggests strengths and weaknesses in managing inventory, collecting receivables, and utilizing working capital efficiently. Further investigation and comparison with industry benchmarks can provide more insights into the company's operational performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 209.13 | 106.22 | — | — | — |
| Days of sales outstanding (DSO) | days | 145.35 | 84.37 | — | 75.79 | — |
| Number of days of payables | days | — | — | — | — | — |
The analysis of TG Therapeutics Inc's activity ratios reveals the following trends:
1. Days of Inventory on Hand (DOH):
- In 2023, the company had 106.22 days of inventory on hand, which indicates that the company held its inventory for an average of 106.22 days before selling it.
- The DOH increased significantly to 209.13 days in 2024, suggesting a potential slowdown in inventory turnover or accumulation of excess inventory.
2. Days of Sales Outstanding (DSO):
- DSO was not available for 2020 and 2022.
- In 2021, the company had 75.79 days of sales outstanding, indicating that it took approximately 75.79 days to collect payment from customers after making a sale.
- The DSO increased to 84.37 days in 2023 and further to 145.35 days in 2024, which could indicate potential issues with accounts receivable management or extending credit terms to customers.
3. Number of Days of Payables:
- Data for the number of days of payables was not available for any of the years provided, suggesting that information on the company's payment terms to suppliers is lacking.
Overall, the trends in the activity ratios suggest potential inefficiencies in inventory management and accounts receivable collection for TG Therapeutics Inc. It is recommended for the company to closely monitor and improve these aspects to enhance its operational efficiency and cash flow management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 2,326.81 | 9.07 | 11.15 | 0.32 |
| Total asset turnover | 0.56 | 0.67 | 0.01 | 0.02 | 0.00 |
TG Therapeutics Inc's fixed asset turnover ratio has shown significant fluctuations over the years, starting at a low of 0.32 in 2020, then surging to 11.15 in 2021, and remaining relatively high at 9.07 in 2022. However, the ratio experienced a massive spike to 2,326.81 in 2023, which is likely an anomaly or an error in the data provided. The absence of data for 2024 makes it challenging to assess the trend accurately.
On the other hand, the total asset turnover ratio indicates how efficiently the company is utilizing its total assets to generate revenue. The ratio remained very low in 2020 and 2021, at 0.00 and 0.02, respectively. It further decreased to 0.01 in 2022 but saw a substantial increase to 0.67 in 2023, showing an improvement in asset utilization. The ratio decreased slightly to 0.56 in 2024. Overall, the company has shown fluctuations in its total asset turnover efficiency over the years but has improved significantly from 2020 to 2023.