United Therapeutics Corporation (UTHR)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
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Revenue (ttm) | US$ in thousands | 2,877,400 | 2,756,200 | 2,616,700 | 2,498,300 | 2,327,500 | 2,204,300 | 2,110,900 | 1,981,300 | 1,936,300 | 1,860,000 | 1,788,700 | 1,768,300 | 1,685,500 | 1,655,200 | 1,590,600 | 1,506,100 | 1,483,300 | 1,409,500 | 1,430,900 | 1,442,500 |
Total current assets | US$ in thousands | 3,873,900 | 4,000,400 | 3,619,500 | 3,248,700 | 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 |
Total current liabilities | US$ in thousands | 738,100 | 873,400 | 832,300 | 860,600 | 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 |
Working capital turnover | 0.92 | 0.88 | 0.94 | 1.05 | 0.85 | 0.81 | 0.74 | 0.69 | 0.64 | 0.68 | 0.76 | 0.77 | 0.84 | 0.80 | 0.79 | 0.88 | 0.80 | 0.88 | 0.87 | 0.88 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 some fluctuations over the past few years. The ratio has ranged from a low of 0.64 to a high of 1.05. A working capital turnover ratio below 1 indicates that the company is not efficiently utilizing its working capital to generate sales. It implies that the company may have excess working capital that is not being effectively leveraged to drive revenue.
Looking at the trend, we observe that the working capital turnover ratio has generally been on a downward trajectory since March 31, 2023, hitting a low of 0.64 on December 31, 2022. However, there has been a recent increase in the ratio, with a significant improvement to 1.05 on March 31, 2024, which indicates that the company has become more efficient in generating sales relative to its working capital. This improvement could be a positive sign of better management of working capital and increased sales productivity.
Overall, it would be essential for United Therapeutics Corporation to sustain this upward trend in the working capital turnover ratio to ensure optimal utilization of working capital resources for revenue generation. Regular monitoring and strategic management of working capital will be crucial in maintaining operational efficiency and financial performance.
Peer comparison
Dec 31, 2024