United Therapeutics Corporation (UTHR)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	2,268,200	2,147,800	2,060,800	1,939,800	1,903,900	1,743,300	1,676,600	1,657,700	1,666,900	1,751,900	1,687,000	1,601,600	1,491,500	1,399,000	1,425,300	1,442,500	1,448,800	1,519,100	1,530,300	1,601,200
Total current assets	US$ in thousands	3,551,000	3,458,900	3,213,400	3,193,000	3,380,300	3,056,400	2,684,300	2,586,600	2,323,600	2,385,900	2,317,900	2,014,300	2,167,200	1,868,200	1,894,400	1,846,300	1,864,500	1,933,400	2,139,800	1,942,500
Total current liabilities	US$ in thousands	804,400	744,100	370,300	324,600	343,200	315,900	331,500	292,600	305,400	320,000	311,400	302,400	323,300	258,900	255,000	207,300	463,000	469,900	463,500	270,000
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

December 31, 2023 calculation

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

The working capital turnover ratio for United Therapeutics Corp has shown some fluctuations over the past eight quarters. The ratio measures how efficiently the company manages its working capital to generate revenue. A higher ratio indicates that the company is utilizing its working capital more effectively to support its operations.

In the most recent quarter (Q4 2023), the working capital turnover ratio was 0.85, which was an improvement from the previous quarter (Q3 2023) at 0.81. This suggests that United Therapeutics Corp was able to generate more revenue for each unit of working capital invested during Q4 2023.

Looking further back, the working capital turnover ratio has generally been on an upward trend since Q1 2022 when it was at 0.77. This improvement indicates that the company has been more efficient in managing its working capital over time.

However, it is worth noting that there were fluctuations in the ratio over some quarters, such as in Q2 2023 (0.74) and Q4 2022 (0.64). These fluctuations could be due to various factors impacting the company's working capital management and revenue generation during those specific periods.

Overall, United Therapeutics Corp's working capital turnover ratio has shown improvements, highlighting a trend towards more efficient utilization of working capital to drive revenue generation. It would be important for the company to continue monitoring and optimizing its working capital management to sustain and further improve its operational efficiency.