United Therapeutics Corporation (UTHR)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 2,877,400 | 2,327,500 | 1,936,300 | 1,685,500 | 1,483,300 |
Total current assets | US$ in thousands | 3,873,900 | 3,551,000 | 3,380,300 | 2,323,600 | 2,167,200 |
Total current liabilities | US$ in thousands | 738,100 | 804,400 | 343,200 | 305,400 | 323,300 |
Working capital turnover | 0.92 | 0.85 | 0.64 | 0.84 | 0.80 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,877,400K ÷ ($3,873,900K – $738,100K)
= 0.92
United Therapeutics Corporation's working capital turnover has shown fluctuation over the last five years, with the ratio ranging from 0.64 to 0.92. The working capital turnover indicates how efficiently the company is utilizing its working capital to generate sales revenue.
The trend shows a slight improvement in the efficiency of working capital turnover from 2020 to 2024, as the ratio increased gradually. A higher working capital turnover ratio implies that the company is effectively managing its working capital to support sales growth.
While the ratio has improved over the years, it would be beneficial for United Therapeutics Corporation to continue monitoring and optimizing its working capital management practices to ensure efficient utilization of resources and improve overall financial performance.
Peer comparison
Dec 31, 2024