United Therapeutics Corporation (UTHR)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,268,200	1,903,900	1,666,900	1,483,300	1,448,800
Total current assets	US$ in thousands	3,551,000	3,380,300	2,323,600	2,167,200	1,864,500
Total current liabilities	US$ in thousands	804,400	343,200	305,400	323,300	463,000
Working capital turnover		0.83	0.63	0.83	0.80	1.03

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,268,200K ÷ ($3,551,000K – $804,400K)
= 0.83

United Therapeutics Corp's working capital turnover has fluctuated over the past five years. In 2023, the working capital turnover ratio improved to 0.85 from 0.64 in 2022. This suggests that the company generated $0.85 in revenue for every dollar of working capital in 2023, showing a more efficient use of its working capital compared to the previous year.

However, it is worth noting that the working capital turnover ratio in 2023 is lower than in 2019 when it stood at 1.03. This indicates a potential decrease in efficiency in utilizing working capital over the past five years.

Overall, the trend in the working capital turnover ratio for United Therapeutics Corp shows variability, with fluctuations witnessed over the past five years. Monitoring this ratio can provide insight into the company's efficiency in managing its working capital and generating revenue.