Veracyte Inc (VCYT)

Working capital turnover

Jun 30, 2025 Mar 31, 2025 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
Revenue (ttm) US$ in thousands 479,129 463,393 445,764 425,331 399,579 375,473 361,051 343,149 328,633 311,175 296,536 283,575 268,353 250,594 219,514 186,714 157,465 123,064 117,483 112,677
Total current assets US$ in thousands 414,681 383,152 372,267 356,854 321,106 290,418 285,621 271,163 259,480 251,503 248,636 238,516 235,045 238,483 243,102 229,308 371,346 362,092 375,679 370,315
Total current liabilities US$ in thousands 76,433 75,125 78,633 70,313 72,339 58,052 61,241 57,260 58,151 55,993 62,614 58,352 59,345 62,543 64,151 50,037 36,105 32,709 16,781 13,919
Working capital turnover 1.42 1.50 1.52 1.48 1.61 1.62 1.61 1.60 1.63 1.59 1.59 1.57 1.53 1.42 1.23 1.04 0.47 0.37 0.33 0.32

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $479,129K ÷ ($414,681K – $76,433K)
= 1.42

The working capital turnover ratio for Veracyte Inc. demonstrates a pattern of gradual improvement over the observed period from September 30, 2020, to June 30, 2023. Initially, the ratio was relatively low at 0.32 in September 2020 and slightly increased to 0.33 by the end of that year. Throughout 2021, the ratio exhibited a consistent upward trajectory, reaching 1.04 by September 2021 and further advancing to 1.23 at year-end. This upward trend persisted into 2022, with the ratio climbing from 1.42 in the first quarter to 1.53 in the second quarter, before approaching a stable range around 1.59 by the end of that year.

In 2023, the ratio maintained its elevated level, fluctuating marginally around 1.60, specifically reaching 1.63 in June 2023 before a slight decline to 1.60 by September 2023. This indicates a significant increase in the company's efficiency in utilizing working capital to generate sales over the period from 2020 to mid-2023.

However, starting from the latter part of 2023 into 2024 and subsequent quarters, the ratio appears to have stabilized with minor fluctuations around 1.50 to 1.60, reflecting a period of relative consistency in working capital efficiency. Notably, there is a slight decline observed in September 2024, where the ratio decreased to 1.48, followed by a modest rebound to 1.52 in December 2024. The first half of 2025 shows a declining trend, with the ratio decreasing to approximately 1.42 by June 2025.

Overall, the data indicates that Veracyte Inc. experienced substantial improvements in working capital efficiency from 2020 through mid-2023, after which the ratio stabilized at a relatively steady level. The fluctuations in the recent period suggest a possible stabilization phase or shifts in operational management or market conditions impacting working capital utilization.