Veracyte Inc (VCYT)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 445,764 361,051 296,536 219,514 117,483
Total current assets US$ in thousands 372,267 285,621 248,636 243,102 375,679
Total current liabilities US$ in thousands 78,633 61,241 62,614 64,151 16,781
Working capital turnover 1.52 1.61 1.59 1.23 0.33

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $445,764K ÷ ($372,267K – $78,633K)
= 1.52

The analysis of Veracyte Inc's working capital turnover reveals a progressive improvement over the analyzed period. As of December 31, 2020, the ratio was 0.33, indicating that the company's utilization of working capital to generate revenue was relatively low. This figure increased significantly in the subsequent year, reaching 1.23 by December 31, 2021, which reflects a substantial enhancement in the efficiency of working capital utilization.

This upward trend continued into 2022, with the ratio climbing to 1.59, further indicating improved operational efficiency. The ratio remained relatively stable into 2023, at 1.61, suggesting a plateau but maintaining a high level of working capital efficiency. In 2024, a slight reduction to 1.52 was observed, which still represents a strong ratio compared to earlier years, though it may denote a modest decline in efficiency or a normalization following prior improvements.

Overall, the trajectory of Veracyte Inc's working capital turnover indicates a significant increase from 2020 to 2022, with sustained efficiency in the subsequent years. The data suggests that the company has been able to optimize its working capital management effectively over this period, enhancing its capacity to generate revenue relative to its working capital investment.