United Therapeutics Corporation (UTHR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.96 | 2.08 | 2.14 | 2.31 | 2.30 | 2.32 | 2.03 | 1.71 | 1.46 | 1.40 | 1.31 | 1.42 | 1.31 | 1.27 | 1.32 | 1.17 | 1.25 | 1.16 | 1.24 | 1.22 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 0.92 | 0.88 | 0.94 | 1.05 | 0.85 | 0.81 | 0.74 | 0.69 | 0.64 | 0.68 | 0.76 | 0.77 | 0.84 | 0.80 | 0.79 | 0.88 | 0.80 | 0.88 | 0.87 | 0.88 |
Based on the provided data, we can analyze the activity ratios of United Therapeutics Corporation as follows:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. United Therapeutics Corporation's inventory turnover has been increasing steadily over the past several periods, reaching 1.96 by December 31, 2024. This suggests that the company is managing its inventory more effectively and selling goods at a faster pace.
2. Receivables Turnover:
- Unfortunately, we do not have data for the receivables turnover ratio for United Therapeutics Corporation. This ratio would have allowed us to assess how quickly the company collects on its credit sales.
3. Payables Turnover:
- Similarly, data for the payables turnover ratio is not provided. This ratio helps in evaluating how quickly the company pays its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently the company is using its working capital to generate sales. United Therapeutics Corporation's working capital turnover has shown some fluctuations over the periods, with an increase to 1.05 by March 31, 2024, indicating improved efficiency in utilizing its working capital.
In conclusion, United Therapeutics Corporation has demonstrated a positive trend in its inventory turnover and working capital turnover ratios, suggesting improved efficiency in managing inventory and working capital. However, the absence of data for receivables and payables turnover limits a comprehensive assessment of the company's overall activity ratios.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 186.09 | 175.67 | 170.74 | 157.76 | 158.47 | 157.05 | 179.97 | 213.66 | 250.37 | 260.71 | 278.32 | 256.72 | 279.49 | 287.66 | 275.74 | 312.47 | 292.07 | 314.24 | 294.69 | 300.09 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
United Therapeutics Corporation's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the analyzed period. Starting at 300.09 days on March 31, 2020, it experienced both increases and decreases before reaching 186.09 days on December 31, 2024. This indicates that the company has been managing its inventory levels more efficiently as the days required to sell the inventory decreased over time.
In contrast, Days of Sales Outstanding (DSO) and Number of Days of Payables data are unavailable for the analyzed period, suggesting that specific information on these activity ratios is not disclosed in the provided dataset. Therefore, a detailed analysis of United Therapeutics Corporation's performance in terms of DSO and payables turnover cannot be provided based on the available information.
Overall, focusing on inventory management, it appears that United Therapeutics Corporation has made improvements in handling its inventory levels efficiently over the analyzed period, which could positively impact its working capital management and overall financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 2.25 | 2.21 | 2.25 | 2.21 | 2.26 | 2.25 | 2.16 | 2.28 | 2.22 | 2.11 | 2.03 | 1.91 | 1.92 | 1.95 |
| Total asset turnover | 0.39 | 0.39 | 0.39 | 0.38 | 0.32 | 0.31 | 0.32 | 0.31 | 0.32 | 0.32 | 0.32 | 0.33 | 0.33 | 0.33 | 0.33 | 0.32 | 0.32 | 0.32 | 0.34 | 0.36 |
The Fixed Asset Turnover ratio for United Therapeutics Corporation has shown a generally increasing trend from March 31, 2020, to June 30, 2023, peaking at 2.28 on September 30, 2021. This indicates that the company is generating more revenue per dollar invested in fixed assets over time. However, the ratio slightly declined in the following periods but remained relatively high, suggesting efficient utilization of fixed assets.
On the other hand, the Total Asset Turnover ratio fluctuated within a narrow range of 0.31 to 0.39 from March 31, 2020, to December 31, 2024. The ratio improved significantly towards the end of the period, reaching its highest point in the last three quarters. This indicates that United Therapeutics Corporation has been effective in generating sales relative to its total assets, potentially indicating strong operational efficiency and asset utilization.
Overall, both ratios suggest that United Therapeutics Corporation has been effectively managing its assets to generate revenue, with the Total Asset Turnover showing a steady improvement towards the end of the observed period.