United Therapeutics Corporation (UTHR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.56 | 3.71 | 3.15 | 2.95 | 1.64 | 5.59 | 4.74 | 3.64 | 4.22 | 3.42 | 3.23 | 3.27 | 3.19 | 1.96 | 2.16 | 1.55 | 1.26 | 1.28 | 1.44 | 1.81 |
| Receivables turnover | 8.13 | 8.31 | 7.56 | 14.42 | 8.64 | 7.52 | 9.67 | 9.72 | 8.39 | 8.23 | 9.73 | 11.35 | 9.48 | 9.19 | 8.29 | 9.64 | 9.57 | 8.27 | 8.45 | 10.02 |
| Payables turnover | 130.91 | — | — | — | 40.83 | — | — | — | 104.24 | — | — | — | 67.22 | — | — | — | 11.88 | — | — | — |
| Working capital turnover | 0.83 | 0.79 | 0.72 | 0.68 | 0.63 | 0.64 | 0.71 | 0.72 | 0.83 | 0.85 | 0.84 | 0.94 | 0.81 | 0.87 | 0.87 | 0.88 | 1.03 | 1.04 | 0.91 | 0.96 |
United Therapeutics Corp's activity ratios indicate the efficiency of the company in managing its assets and liabilities to generate sales.
1. Inventory turnover: The inventory turnover ratio measures how efficiently the company is managing its inventory to generate sales. United Therapeutics Corp's inventory turnover has been relatively stable around 2. However, there was a slight increase in Q4 2023 compared to previous quarters, indicating an improvement in managing inventory levels.
2. Receivables turnover: The receivables turnover ratio assesses how quickly the company is collecting on its credit sales. United Therapeutics Corp's receivables turnover ratio has shown some fluctuations but generally remains within a healthy range. The significant increase in Q1 2023 indicates a more efficient collection of receivables during that period.
3. Payables turnover: The payables turnover ratio reflects how quickly the company is paying its suppliers. United Therapeutics Corp's payables turnover ratio is relatively high, indicating that the company is managing its payables efficiently. However, data for Q3 and Q2 2023 is not available, so a trend analysis for this period is not possible.
4. Working capital turnover: The working capital turnover ratio measures how effectively the company is utilizing its working capital to generate sales. United Therapeutics Corp's working capital turnover has been steady, with a slight decrease in Q4 2023 compared to the previous quarters. This implies that the company is efficiently using its working capital resources to support its operations.
Overall, United Therapeutics Corp demonstrates effectiveness in managing its inventory, receivables, payables, and working capital to drive sales, with minor fluctuations in some ratios across the quarters. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's performance in this area.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.66 | 98.32 | 115.98 | 123.80 | 222.40 | 65.26 | 77.08 | 100.35 | 86.44 | 106.67 | 113.11 | 111.62 | 114.56 | 186.32 | 169.03 | 235.32 | 289.89 | 284.56 | 253.36 | 201.11 |
| Days of sales outstanding (DSO) | days | 44.88 | 43.95 | 48.30 | 25.31 | 42.25 | 48.51 | 37.75 | 37.54 | 43.51 | 44.34 | 37.52 | 32.16 | 38.52 | 39.74 | 44.05 | 37.85 | 38.14 | 44.11 | 43.17 | 36.43 |
| Number of days of payables | days | 2.79 | — | — | — | 8.94 | — | — | — | 3.50 | — | — | — | 5.43 | — | — | — | 30.73 | — | — | — |
The data provided shows the activity ratios for United Therapeutics Corp over the past eight quarters.
1. Days of inventory on hand (DOH) measures how efficiently the company manages its inventory. A decreasing trend in DOH signifies improved inventory management. In the given data, we observe a declining trend in DOH, indicating that the company is managing its inventory better over time.
2. Days of sales outstanding (DSO) indicates the average number of days it takes for the company to collect revenue after a sale is made. A lower DSO indicates faster collection of receivables. Looking at the data, we see fluctuations in DSO, with some quarters showing lower values than others. The variability in DSO may suggest changes in the company's credit policies or the efficiency of its accounts receivable management.
3. Number of days of payables represents how long it takes the company to pay its suppliers. A higher number of days of payables implies the company is taking longer to pay its bills. In the data provided, there are missing values for some quarters, but in quarters where the data is available, we observe a decreasing trend in the number of days of payables. This may indicate that the company is paying its suppliers more promptly or negotiating better payment terms.
Overall, analyzing these activity ratios together provides insights into United Therapeutics Corp's efficiency in managing its inventory, collecting receivables, and paying its suppliers. The trends observed can help assess the company's operational effectiveness and potential areas for improvement.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 2.17 | 2.16 | 2.19 | 2.16 | 2.21 | 2.07 | 2.12 | 2.11 | 2.13 | 2.41 | 2.36 | 2.24 | 2.04 | 1.90 | 1.92 | 1.95 | 1.96 | 2.24 | 2.16 | 2.28 |
| Total asset turnover | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.30 | 0.30 | 0.31 | 0.32 | 0.35 | 0.35 | 0.35 | 0.32 | 0.32 | 0.34 | 0.36 | 0.37 | 0.38 | 0.39 | 0.43 |
The fixed asset turnover ratio for United Therapeutics Corp has been relatively stable over the past eight quarters, ranging between 2.21 and 2.26. This indicates that the company generates approximately $2.21 to $2.26 in revenue for every dollar invested in fixed assets. Consistent performance in this ratio suggests that the company efficiently utilizes its fixed assets to generate sales.
On the other hand, the total asset turnover ratio for United Therapeutics Corp has also been consistent, ranging from 0.31 to 0.33 over the same period. This ratio signifies that the company generates approximately $0.31 to $0.33 in revenue for every dollar invested in total assets. While this ratio is lower compared to the fixed asset turnover ratio, it still reflects the company's ability to efficiently generate sales relative to its total asset base.
Overall, both ratios indicate that United Therapeutics Corp effectively utilizes its assets to generate revenue. The stability in these ratios over time suggests that the company's asset management strategies are consistent and effective in maximizing sales relative to its asset base.