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.