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.