Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

The analysis of the financial ratios and periods reveals notable trends in the company's operational efficiency and liquidity management over the periods presented.

Inventory Turnover and Processing Period

Inventory turnover showed an initial rise from 0.58 to a peak of 1.27 between March 2021 and June 2022, indicating improving efficiency in inventory management. However, following the peak, there was a gradual decline to around 0.63 by March 2025. Correspondingly, the average inventory processing period decreased sharply from 625 days in March 2021 to approximately 287 days in June 2022, then extended again to beyond 570 days by 2025. This pattern suggests initial success in speeding inventory liquidation, followed by a slowdown in turnover efficiency over time.

Receivables Turnover and Collection Period

Receivables turnover improved from 2.07 in March 2021 to a high of 3.41 in June 2022, reflecting accelerated collection efforts. The turnover ratios then stabilized around the mid-2.0s range through 2025. The average receivable collection period mirrored this, shortening significantly from 177 days in March 2021 to about 107 days in June 2022, before fluctuating around 140 to 160 days thereafter, indicating relatively consistent collections with some variability.

Payables Turnover and Payment Period

Payables turnover experienced significant volatility, peaking at 5.39 in June 2022 before declining to roughly 2.5-3.0 towards early 2025. The average payables payment period inversely reflected these changes, dropping from 155 days in early 2021 to as low as 68 days in June 2022, then increasing again past 100 days in subsequent quarters. This suggests fluctuating management of payable obligations, alternating between quicker payments and extended payment periods.

Working Capital Turnover

Working capital turnover ratio trended upward from 1.2 in March 2021 to 1.59 in March 2022, indicative of more efficient use of working capital. However, after this peak, there was gradual decline to a low of approximately 0.82 by late 2023, with minor recovery thereafter reaching around 1.01 by March 2025. This trend points to fluctuating efficiency in utilizing working capital to generate revenue within the period.

Operating Cycle

The operating cycle shortened substantially from a high of 819 days in June 2021 to a low near 394 days in June 2022, highlighting improved operational efficiency. Post mid-2022, the cycle lengthened again steadily, reaching over 700 days at the end of the dataset. This increase indicates a regression towards longer cash-to-cash cycles, possibly reflecting slower inventory turnover or collections.

Cash Conversion Cycle

The cash conversion cycle followed a similar trajectory, decreasing from 647 days in March 2021 to 326 days by June 2022, denoting faster conversion of resources into cash. However, after this trough, the cycle extended progressively, reaching around 597 days by March 2025. This reflects an increasing duration for cash tied up in operations, potentially causing liquidity strains if the trend continues.

Overall, the data portrays a phase of operational improvement peaking around mid-2022, characterized by more rapid inventory turnover, faster receivables collection, and shortened operating and cash conversion cycles. Subsequent periods reveal a gradual decline in these efficiencies, with working capital turnover and inventory processing times suggesting slower asset utilization and increased cash flow cycles. Payables management demonstrates inconsistency, with alternating payment speeds that may impact supplier relations or cash reserves. Continued monitoring of these indicators is advisable to identify underlying causes and to formulate strategies aimed at restoring and sustaining operational efficiency and liquidity.

Cost of Revenues

The cost of revenues shows significant fluctuations over the observed periods. Starting at approximately $217.3 million in March 2020, it rose moderately through the end of 2020, reaching $353.1 million in December 2020. The first half of 2021 witnessed a sharp increase, peaking at $693.7 million in June 2021, followed by fluctuating but generally elevated values for the remainder of 2021. Throughout 2022 and into 2023, the cost declined somewhat, but remained generally elevated relative to early 2020 levels, with values around the mid-$400 million to $540 million range. The final periods from 2023 to early 2025 exhibit moderate variability but no clear upward or downward trend, with costs stabilizing in the range of roughly $433 million to $565 million. This suggests episodic changes possibly due to operational adjustments or shifts in production volumes.

Inventories

Inventories have shown a consistent upward trend across the entire timeframe. Beginning at roughly $1.48 billion in March 2020, the inventory balance grew steadily, surpassing $3.19 billion by March 2025. While some minor fluctuations are present, the overall trajectory indicates persistent inventory accumulation. This continual increase may reflect strategic inventory buildup, changes in supply chain management, or anticipation of demand. The growth in inventories is substantial, amounting to more than doubling over the five-year span.

Inventory Turnover

Inventory turnover ratios are available from September 2020 onward and demonstrate notable variation. Starting at 0.58 in September 2020, the turnover slightly decreased to 0.56 in December 2020 but rose markedly to peak at 1.27 in the middle of 2021. Following this peak, the turnover ratio generally declined across subsequent quarters, stabilizing around 0.63 to 0.72 from 2022 onwards. This decrease in turnover ratio despite rising inventory levels suggests a slower rate of inventory utilization or sales relative to inventory holdings. The peak turnover in early 2021 could indicate a period of more efficient inventory management or increased sales velocity, whereas the subsequent decline points to inventory accumulating faster than it is sold or utilized.

Summary Insights

The data collectively indicate a period of marked volatility in the cost of revenues, particularly during 2021, coupled with steady growth in inventory levels. The simultaneous decline in inventory turnover ratios suggests that while inventories are increasing, the speed at which these inventories are being converted to sales or consumption is slowing. This may imply potential challenges in demand forecasting, supply chain adjustments, or changes in product mix affecting inventory management efficiency. Monitoring these metrics will be critical to identify any emerging risks related to overstocking or cost management going forward.

Revenues

The revenues exhibit notable fluctuations over the reported periods. Beginning at approximately 1.83 billion USD in March 2020, revenues increased moderately through the end of 2020 and stabilized around 2.5 billion USD by March 2021. A significant spike is observed in the second quarter of 2021, with revenues exceeding 5.1 billion USD, followed by volatility in subsequent quarters. Post-2021, revenues generally fluctuate between 2.9 billion and 3.4 billion USD quarterly, demonstrating moderate growth trends in late 2023 and early 2024, before declining to around 3 billion USD in the first quarter of 2025. This pattern suggests episodic revenue surges rather than steady organic growth.

Accounts Receivable, Net

The net accounts receivable values show a rising trend from 2.93 billion USD in March 2020, increasing through 2021 with a peak near 7 billion in June 2021, coinciding with the revenue spike. Following this peak, the amounts stabilize mostly between 5.1 billion and 6.2 billion USD. Towards the end of the observed periods, especially in 2024, accounts receivable remain elevated with minor fluctuations but show a slight decrease in the first quarter of 2025. The elevated receivables relative to revenues in later periods may indicate extended credit terms or collection challenges.

Receivables Turnover Ratio

The receivables turnover ratio, available from mid-2020 onward, fluctuates between approximately 1.77 and 3.41. This ratio peaks at 3.41 in the first quarter of 2022, indicating relatively efficient collection during that period. In general, the ratio tends to hover around an average of about 2.3 to 2.5, suggesting moderate efficiency in collecting receivables over the quarter. The lack of a clear upward or downward trend implies that collection practices have remained relatively consistent despite the fluctuations in revenues and receivables.

The analysis of the quarterly financial data reveals several notable trends and fluctuations across key metrics for the periods observed.

Cost of Revenues

The cost of revenues exhibits significant volatility over the quarters. Initial values start at 217.3 million US dollars in the first quarter of 2020 and increase modestly until the end of that year, peaking at 353.1 million US dollars in December 2020. There is a pronounced spike in mid-2021, with the highest cost recorded at 982.6 million US dollars in December 2021. Following this peak, the cost declines sharply but remains elevated compared to earlier years. Throughout 2022 and into 2023, the cost fluctuates, maintaining levels primarily between approximately 400 million and 540 million US dollars, with a noticeable increase again towards the end of 2023 and into 2024, reaching up to around 565.4 million US dollars by the end of 2024. The last available quarter, March 2025, shows a decrease to 464.3 million US dollars. Overall, the cost of revenues shows periods of substantial increase, calibration, and moderate decline, indicative of possible changes in production scale, pricing, or cost management strategies.

Accounts Payable

Accounts payable figures demonstrate an upward trend with fluctuations, beginning at 347.8 million US dollars in the first quarter of 2020 and increasing to 475.5 million by the end of the same year. The first half of 2021 shows considerable variability, with payables peaking at 564.0 million US dollars in December 2021. Subsequently, accounts payable remain relatively elevated in 2022 with values mostly in the 470 million to 590 million range. In 2023, payables maintain similar levels but show slight oscillations, peaking around 606.6 million US dollars by the end of the year. The ongoing trend into 2024 indicates volatility with a notable peak at 789.5 million US dollars in the first quarter, followed by a decrease ending at 705.5 million US dollars in the last quarter reported. This pattern suggests ongoing changes in supplier payment terms, procurement activity, or capital management practices.

Payables Turnover Ratio

The payables turnover ratio is presented from the first quarter of 2020 onwards, demonstrating variability in the efficiency of payments to suppliers. The ratio fluctuates between a low of 2.23 and a high of 5.39 throughout the periods. In particular, during late 2020 and early 2021, the turnover ratio increased sharply, indicating faster payments to suppliers that might correspond with operational or financial strategies emphasizing liquidity management. Subsequently, turnover ratios see declines and recoveries, fluctuating between roughly 2.5 and 4.0, with a tendency to stabilize around the mid-3 range toward later periods in 2024 and early 2025. These movements suggest cyclical adjustments in payment policies or operational cash flow management affecting how quickly liabilities are settled.

In summary, the data indicate a company experiencing significant fluctuations in cost of revenues and accounts payable, with periodic peaks possibly linked to internal or external factors affecting production and procurement. The payables turnover ratio confirms variability in payment practices, suggesting dynamic working capital management strategies in response to operational demands or market conditions.

Working Capital

The working capital shows a fluctuating trend over the observed quarters. Initially, it decreased sharply from 6,588,900 thousand US dollars at March 31, 2020 to 4,157,800 thousand US dollars at June 30, 2020. After that decline, it increased steadily, peaking at 16,055,800 thousand US dollars at December 31, 2023. However, this was followed by a gradual decrease to 14,005,100 thousand US dollars by March 31, 2025. Overall, despite some intermediate volatility, the working capital exhibited a general upward trend until late 2023 before showing signs of a moderate decline.

Revenues

Revenues demonstrate considerable variability across the quarters. Starting at 1,828,200 thousand US dollars on March 31, 2020, revenues increased moderately in the first year, reaching a notable peak of 5,138,500 thousand US dollars at June 30, 2021. Subsequently, revenues experienced a decline and then fluctuated between approximately 2,850,000 and 3,700,000 thousand US dollars through late 2024, with minor peaks and troughs. In the most recent quarter ending March 31, 2025, revenues decreased to 3,028,700 thousand US dollars. The pattern suggests episodic spikes likely attributable to specific events or product cycles, with no sustained linear growth throughout the period.

Working Capital Turnover Ratio

The working capital turnover ratio was generally higher earlier in the dataset, with values above 1.2 in late 2020 through early 2021, indicating more efficient use of working capital to generate revenue. Over subsequent quarters, a downward trend emerged, reaching a low of 0.82 at December 31, 2023, which denotes a relative decline in revenue generated per unit of working capital. From early 2024, the ratio stabilized somewhat, fluctuating around 0.87 to 1.01, suggesting a modest improvement in operational efficiency or changes in working capital management. The ratio remained below the early peak levels, indicating a longer term reduction in turnover efficiency compared to the start of the observed period.

Overall Insights

Over the four-plus years analyzed, there is a notable increase in absolute working capital, reflecting possibly enhanced liquidity or accumulation of current assets relative to liabilities. However, this has not consistently translated into proportional revenue growth, as indicated by the volatility in revenue figures and the declining trend in working capital turnover. The decreased turnover ratio implies the company may be holding more working capital relative to its revenue-generating activities, which could signal changes in operational strategy, inventory build-up, or accounts receivable management. The episodic revenue surges suggest responsiveness to market conditions or product launches but do not establish a steady growth trend.

The analysis of the inventory turnover ratio reveals a clear pattern of fluctuation over the observed periods. Starting from a low level around 0.58 in March 2021, the ratio improved steadily through the year 2021, peaking at approximately 1.27 in mid-2022. This increase indicates a period during which the company was able to turn over its inventory more efficiently. However, beginning in late 2022, the turnover ratio experienced a gradual decline, decreasing from 0.96 at the end of September 2022 to about 0.63 by March 2025. This downward trend suggests a slowing in the rate at which inventory is sold and replaced.

The inventory turnover ratio is inversely mirrored by the average inventory processing period. Early in the timeline, the processing period was quite extended, with values above 600 days in the first half of 2021. This duration shortened significantly as efficiency improved, reaching a low near 287 days in mid-2022, which corresponds with the peak in inventory turnover. Following this period, the processing time lengthened once again, climbing back above 570 days in the later periods, consistent with the decline in turnover ratio.

Inventory Turnover Ratio

Initiated around 0.58 in early 2021, displayed significant improvement through 2021 and the first half of 2022, peaking at 1.27.

From late 2022 onwards, a steady decrease occurred, reaching 0.63 by early 2025.

Indicates an initial enhancement of inventory management followed by a gradual reduction in turnover efficiency.

Average Inventory Processing Period

High initial values exceeding 600 days in early 2021 suggest prolonged inventory holding times during that period.

Processing periods decreased sharply to approximately 287 days by mid-2022, correlating with improved turnover ratios.

Post mid-2022, the period lengthened progressively, surpassing 570 days by early 2025, indicating slower inventory movement.

In summary, the company experienced a phase of improving inventory efficiency until mid-2022, followed by a sustained period of declining performance in inventory turnover and increasing inventory processing time. This trend points to potential challenges in inventory management or changes in market demand affecting the pace of inventory turnover over the latter periods.

Receivables Turnover

The receivables turnover ratio exhibits notable fluctuations throughout the observed periods. Beginning at 2.07 in March 2021, it initially declines to 1.77 by September 2021, indicating a slowdown in the efficiency of collecting receivables during that quarter. Subsequently, the ratio recovers and peaks at 3.41 in June 2022, reflecting a significant improvement in collections. After this peak, the ratio steadily decreases, stabilizing around the mid-2.0 range in the latest quarters, with a slight increase to 2.53 in March 2025. This pattern suggests cyclical variations in receivables management efficiency with periods of both acceleration and deceleration in turnover.

Average Receivable Collection Period

The average receivable collection period inversely mirrors the trends seen in receivables turnover, as expected. Starting from 177 days in March 2021, it improves to 166 days by June 2021 but then deteriorates sharply to 206 days in September 2021, indicating slower collection during that quarter. From that high, the period shortens significantly to a low of 107 days in June 2022, reflecting a marked enhancement in collection speed. Following this trough, the collection period lengthens again to around 150-160 days in subsequent quarters, with a minor reduction to 144 days by March 2025. This trend points to episodic improvements in cash collection efficiency followed by gradual slowdowns, suggesting variability in credit and collection policies or external factors affecting customer payment behavior.

Summary Insights

Overall, the cycle of fluctuations in the receivables turnover ratio and average collection period reveals alternating phases of efficiency gains and slowdowns in receivables management over the examined timeframe. The peak efficiency noted in mid-2022 is followed by a normalization phase, whereby the company appears to maintain moderate but stable performance in receivables turnover. The return of collection periods to just under five months in recent quarters may warrant attention to optimize working capital management and cash flow reliability going forward.

The analysis of the quarterly financial data reveals notable trends in the company's operational efficiency over the observed periods.

Average Inventory Processing Period

The average inventory processing period showed a fluctuating trend with an initial increase from 625 days at the end of Q1 2021 to a peak of 653 days in Q2 2021. Subsequently, there was a substantial decline to 292 days by Q1 2022, indicating improved inventory turnover during this period. However, following this improvement, the period generally increased again, reaching 582 days by Q1 2025. This suggests a gradual lengthening of the inventory holding time in the more recent quarters.

Average Receivable Collection Period

The average receivable collection period exhibited variability but without a clear long-term directional trend. Starting at 177 days in Q1 2021, it declined slightly in subsequent quarters, reaching a low of 107 days in Q2 2022. Afterward, it rose and fell sporadically, ending at 144 days in Q1 2025. This pattern reflects intermittent changes in the speed of receivables collection, with some improvement in mid-2022 followed by a moderate increase, implying occasional delays in collection periods.

Operating Cycle

The operating cycle, which combines inventory processing and receivable collection periods, mirrored the fluctuations in the two components. It started at 802 days in Q1 2021, increased slightly to 819 days in Q2 2021, then sharply decreased to 429 days by Q1 2022, reflecting improved overall operational efficiency. Despite this improvement, the operating cycle extended once more across subsequent quarters, reaching 726 days by Q1 2025. This indicates a lengthening overall cash conversion cycle, suggesting potential challenges in working capital management in recent periods.

Payables Turnover Ratio

The payables turnover ratio exhibits notable fluctuations over the observed periods. Starting from a lower point around 2.36 to 2.23 in early 2020 to mid-2021, the ratio then rises significantly, peaking at 5.39 in mid-2022. This indicates an increased efficiency or frequency in paying off payables during that period. Subsequent quarters show a declining trend, with the ratio falling to approximately 2.5 by the first quarter of 2025. This decline suggests a gradual lengthening of the time taken to pay suppliers after the peak period.

Average Payables Payment Period

Conversely, the average payables payment period, measured in days, reflects an inverse trend relative to the payables turnover ratio. The period decreases from around 155 to as low as 68 days by mid-2022, indicating quicker payment cycles during this time frame. Afterward, the payment period lengthens progressively, reaching approximately 146 days by early 2025. This extension mirrors the reduction in the payables turnover ratio, implying a slower rate of settling payables in recent quarters.

Trend Insights

The data highlights a cyclical pattern in payables management. The mid-2022 peak in payables turnover alongside a minimal average payment period suggests a phase of strengthening liquidity management or supplier payment strategies. The subsequent reversal may reflect changes in working capital management, potential shifts in negotiation terms with suppliers, or strategic adjustments to cash preservation. Overall, the company experienced a move from accelerating payables settlement towards a more extended payment schedule over the observed timeframe.

Average inventory processing period

The average inventory processing period exhibits a fluctuating trend over the observed timeframe starting from March 2021. Initially, there is a notable decline from 625 days in March 2021 to 287 days by June 2022, indicating improved inventory turnover. However, after this low point, the period rises consistently, reaching 582 days by March 2025. This suggests a gradual slowdown in inventory processing efficiency in the latter periods.

Average receivable collection period

The average receivable collection period shows variability but within a narrower range compared to inventory processing. Starting at 177 days in March 2021, it generally trends downward to a low of 107 days in June 2022, reflecting faster collections. Subsequently, the period fluctuates between 146 and 161 days until March 2025, indicating some instability in receivables management but generally maintaining a moderate collection period.

Average payables payment period

The payment period for payables demonstrates a declining pattern followed by irregular fluctuations. From 155 days in March 2021, it decreases sharply to a low of 68 days in June 2022, implying quicker payment to suppliers. After this point, the period varies significantly, with peaks at 146 days in March 2025 and lows around 94 days in September 2024. This irregularity may suggest changing credit terms or payment strategies over time.

Cash conversion cycle

The cash conversion cycle (CCC) mirrors the trends observed in inventory and receivables. It remains elevated initially at around 647-655 days in early 2021, then improves notably to 326 days in June 2022. Following this improvement, the CCC increases steadily, reaching a peak of 640 days by September 2024 before slightly declining to 597 days in March 2025. The CCC trend implies that the company initially improved its working capital efficiency but faced increasing inefficiencies in later periods.