Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

Inventory Turnover

The inventory turnover ratio shows an initial increase from 0.58 in March 2021 to a peak of 1.27 in June 2022, indicating improved efficiency in managing inventory during this period. However, from the peak, the ratio declines steadily to about 0.63 by June 2025, suggesting a gradual slowdown in inventory turnover efficiency in more recent quarters.

Receivables Turnover

The receivables turnover ratio exhibits fluctuations but generally remains within the range of 2.0 to 3.5. It increased from 2.07 in March 2021 to a high of 3.41 in June 2022, reflecting faster collection of receivables in mid-2022. Post that, the ratio declines slightly and stabilizes around 2.3 to 2.5 through mid-2025. This indicates moderate consistency in receivables management over the latter part of the period.

Payables Turnover

The payables turnover ratio saw an increase from 2.36 in March 2021 to a high of 5.39 in June 2022, suggesting the company was paying its suppliers more quickly at that time. Following this peak, the ratio fluctuates and trends downward, stabilizing between 2.5 and 3.9 in the later quarters, implying a return to more moderate payment pacing.

Working Capital Turnover

Working capital turnover increased from 1.20 in March 2021 to a peak of 1.59 in March 2022, signifying improved efficiency in using net working capital to generate sales. After March 2022, the ratio declines consistently to around 0.82-1.08 by June 2025, indicating a reduction in operational efficiency related to working capital usage.

Average Inventory Processing Period

The average inventory processing period drops significantly from 625 days in March 2021 to a low of 287 days in June 2022, reflecting faster inventory turnover. Subsequently, this period lengthens again, fluctuating between approximately 508 and 582 days through mid-2025, suggesting a return to slower inventory processing times.

Average Receivable Collection Period

The collection period decreases from 177 days in March 2021 to 107 days in June 2022, indicating improved efficiency in collecting outstanding receivables. Following mid-2022, the period increases slightly, settling near 144 to 161 days from early 2023 through mid-2025, showing some variability but overall slightly extended collection times compared to the mid-2022 trough.

Operating Cycle

The operating cycle decreases from 802 days in March 2021 to 394 days in June 2022, highlighting significant improvement in the combined management of inventory and receivables. Thereafter, it gradually lengthens, oscillating between 664 and 734 days from late 2022 through mid-2025, indicating a slowdown in the overall operational turnover pace.

Average Payables Payment Period

The payables payment period shortens from 155 days in March 2021 to a low of 68 days in June 2022, reflecting faster payments to suppliers. Following that, the period lengthens again, ranging mostly from 94 to 146 days through mid-2025, indicating more extended payment terms or slower payables turnover in recent periods.

Cash Conversion Cycle

The cash conversion cycle declines from 647 days in March 2021 to 326 days in June 2022, showing marked improvement in the efficiency of cash flow management. After June 2022, the cycle lengthens again, fluctuating between 555 and 640 days through mid-2025, depicting a trend toward slower conversion of resources into cash in recent quarters.

Cost of Revenues

The cost of revenues exhibits considerable volatility over the analyzed periods. Starting around 217.3 million USD in the first quarter of 2020, it experienced a generally upward trend with significant fluctuations. Peaks were observed during the second and fourth quarters of 2021, with costs reaching 693.7 million and 982.6 million USD respectively. After these peaks, the cost dropped sharply in early 2022 but then oscillated between approximately 430 million and 565 million USD through 2024 and into mid-2025. The pattern suggests episodic increases possibly tied to specific operational activities or cost drivers, followed by periods of relative stabilization at elevated levels compared to early 2020.

Inventories

Inventory levels demonstrated a consistent and steady increase throughout the entire timeline. Beginning at about 1.48 billion USD in the first quarter of 2020, inventories rose continuously each quarter without significant declines, reaching over 3.2 billion USD by the second quarter of 2025. This trend reflects sustained accumulation of inventory assets over time, potentially indicating growth in production capacity, stockpiling in anticipation of demand, or slower turnover in inventory.

Inventory Turnover Ratio

The inventory turnover ratio, available from late 2020 onward, reveals a declining trend over time. Starting near 0.58 in the third quarter of 2020, the ratio initially increased to a high of 1.27 in the second quarter of 2022, indicating faster inventory movement at that point. However, subsequent quarters show a gradual and steady decrease in turnover, falling to around 0.63–0.64 by the middle of 2025. This diminishing turnover ratio alongside rising inventories suggests that inventory is being held longer and converted to sales at a slower pace, which can have implications for working capital management and operational efficiency.

Overall Analysis

The financial metrics portray a scenario where costs of revenues have been variable, with pronounced spikes followed by moderate levels, while inventories steadily increased without abatement. The initial rise and subsequent decline in inventory turnover ratio indicate a possible shift in inventory management or sales dynamics, with the company carrying larger stock levels and turning them over less frequently in later periods. This could be reflective of supply chain strategies, market demand fluctuations, or changes in production cycles. It is advisable to monitor how these trends impact liquidity, cost control, and overall operational performance moving forward.

Revenues

Revenues demonstrated an overall upward trend from March 2020 through June 2024, with some fluctuations between quarters. Starting at approximately 1.83 billion USD in the first quarter of 2020, revenues increased steadily until reaching a notable peak of 5.14 billion USD in the second quarter of 2021. Following this peak, there was a decline the next quarter but revenues quickly rebounded, maintaining values around 3 billion to 3.4 billion USD for most quarters thereafter. The revenue figures from early 2023 through June 2024 generally hovered between 3.1 billion and 3.7 billion USD, indicating stable but less volatile performance compared to 2021. The last quarters approaching 2025 show slight volatility with values fluctuating around 3.0 billion to 3.7 billion USD.

Accounts Receivable, Net

The net accounts receivable followed a pattern of increase over the period. Beginning around 2.93 billion USD in March 2020, the data shows growth with intermittent fluctuations. The most substantial growth occurred during the first half of 2021, where receivables rose sharply to nearly 7 billion USD by June 2021. After this peak, values declined but remained elevated compared to 2020, fluctuating mostly between 5.1 billion and 6.2 billion USD. This indicates higher outstanding customer balances relative to earlier periods. Late 2024 and early 2025 data indicate a slight decrease yet remaining above 5.5 billion USD, suggesting sustained higher levels of receivables.

Receivables Turnover

Receivables turnover ratio, available intermittently starting September 2020, reflects how efficiently the company collects its receivables. Beginning at 2.07, the ratio fluctuated slightly but tended to stay within a moderate range between approximately 2.2 and 2.6, with minor declines around late 2022 and early 2023. The highest turnover value was observed at 3.41 in the first quarter of 2022, indicating a period of relatively faster collection. After this peak, turnover ratios mostly remained in the low to mid-2.0 range, suggesting stable collection periods. There is no clear long-term upward or downward trend, but seasonal or quarterly variation appears consistent.

Insight Summary

The data indicates that while revenues have generally increased over the period, the large jump and subsequent stabilization near 3 billion USD from late 2021 onwards suggests a shift in sales dynamics or product cycles. Concurrently, the net accounts receivable grew significantly, particularly in 2021, and remained at an elevated level relative to earlier years. This points to potential changes in credit policy, sales terms, or customer payment behavior. Receivables turnover stability despite higher receivables levels may reflect consistent management of collections, although the lower turnover in some quarters could signal periodic collection challenges. Overall, the company shows growth with increasing sales volume and enlarged credit exposure, balanced by relatively stable collection efficiency.

The analysis of the quarterly financial data reveals several notable trends in cost of revenues, accounts payable, and payables turnover over the observed periods.

Cost of Revenues

The cost of revenues exhibits a generally fluctuating pattern with significant variability between quarters. Starting from approximately $217 million in March 2020, the cost increased to a peak of $982.6 million in December 2021, indicating a rapid rise during this timeframe. After that peak, the cost experienced a decline but remained elevated compared to earlier periods, oscillating between roughly $404 million and $565 million from early 2022 through mid-2025. This suggests cycles of high operational expenditure possibly linked to production scale or product demand shifting over time. Notably, the highest values occur intermittently, with spikes in late 2021 and again in late 2024.

Accounts Payable

Accounts payable figures also show a pattern of increase over the timeline, starting at $348 million in March 2020 and rising to a range generally between approximately $470 million and $790 million in subsequent quarters. The highest recorded values are $789.5 million in March 2025 and above $700 million in the adjacent quarters near mid-2025. The data indicates that the company has been carrying higher payables balances over time, potentially reflecting extended payment terms, increased purchasing activity, or buildup of liabilities. The fluctuations between quarters are present but less pronounced than for cost of revenues, with several quarters demonstrating elevated payables corresponding with higher cost periods.

Payables Turnover Ratio

Payables turnover ratios, available from June 2020 onwards, illustrate variability in how efficiently the company is managing its payables relative to cost of revenues. The ratio fluctuates between approximately 2.23 and 5.39, evidencing changes in payment speed to suppliers. The highest turnover of 5.39 occurred in March 2022, indicating faster payment cycles at that point, whereas lower values near 2.23 and 2.36 in mid-2020 corresponded with slower turnover. Over time, the ratio experiences cyclic ups and downs without a clear long-term trend, suggesting fluctuating cash management or supplier relationships impacting payment behavior.

Overall, the data reflects a business environment marked by substantial variability in cost of revenues and accounts payable, with cost spikes and elevated payables balances suggesting dynamic operational scales or timing effects. Payables turnover ratios reinforce a view of fluctuating payment efficiency, without a consistent upward or downward trajectory. These observations point to ongoing adjustments in operational and financial management practices responding to fluctuating business conditions.

Working Capital

The working capital exhibited notable fluctuations over the analyzed periods. Initially, it decreased significantly from approximately 6.59 billion to 4.16 billion in the first two quarters of 2020, followed by a recovery and a general upward trend through 2021 and 2022, reaching a peak near 16.06 billion by the end of 2023. However, starting from early 2024, a declining trend emerged, with working capital decreasing steadily, ending at around 13.19 billion by mid-2025. This suggests periods of both increased liquidity and capital deployment, with recent quarters indicating a reduction in short-term financial resources or increased utilization of working capital.

Revenues

Revenues showed marked volatility, with a general growth trend punctuated by sharp variations. Early in 2021, revenues surged dramatically, more than doubling from 2.53 billion to approximately 5.14 billion in the second quarter. Subsequent quarters experienced declines and rebounds, reflecting irregular sales or recognition patterns. From 2022 to 2023, revenues remained relatively stable with moderate oscillations around the 3.0 to 3.5 billion range. In 2024 and 2025, revenue patterns were inconsistent, with some quarters showing growth (e.g., 3.5 to 3.7 billion) and others experiencing declines (falling below 3 billion), indicating possible variability in demand, product cycles, or market conditions affecting income generation.

Working Capital Turnover Ratio

This ratio, which measures the efficiency of working capital utilization to generate revenues, presented a downward trend from early 2021 through late 2023, declining from about 1.59 to a low near 0.82. This indicates decreasing efficiency in using working capital to drive sales. Notably, from early 2024, the ratio began to recover gradually, rising back above 1.0 by mid-2025. This suggests improved management of working capital relative to revenues in recent periods, potentially reflecting optimization in operations or better alignment of resources to revenue generation.

Overall Observations

The data reflects alternating periods of growth and contraction in both working capital and revenues, with the working capital turnover ratio mirroring these shifts by showing decreased efficiency during peak liquidity phases and improved efficiency during leaner periods. The sharp revenue increase in mid-2021 likely influenced working capital management strategies. The recent downward trend in working capital coupled with a modest rebound in turnover ratio suggests a strategic emphasis on more efficient capital use amid fluctuating revenue performance.

Inventory Turnover

The inventory turnover ratio data begins from the first quarter of 2021, indicating an initial value of 0.58. A slight decline to 0.56 was seen in the second quarter, followed by a notable increase to 0.82 and 0.88 in the third and fourth quarters, respectively, suggesting improved efficiency in inventory management during the latter half of 2021. The ratio further increased to peak at 1.27 in the second quarter of 2022, reflecting the highest inventory liquidity in the observed period. Subsequently, the turnover ratio exhibits a declining trend through late 2022 and 2023, falling to 0.65 by the first quarter of 2023 but showing slight fluctuations thereafter. From the first quarter of 2023 onward, the ratio remains relatively stable, fluctuating narrowly around 0.64 to 0.72, indicating consistent turnover performance but at a lower level than the 2022 peak. The slight decline observed towards the end of the dataset points to a gradual reduction in inventory turnover efficiency.

Average Inventory Processing Period

Data for the average inventory processing period start in the first quarter of 2021 at 625 days. This metric increases slightly to 653 days in the following quarter, suggesting a lengthening in the time inventory is held. Notably, the average processing period then sharply declines to 445 and 415 days by the third and fourth quarters of 2021, respectively, correlating inversely with the rising inventory turnover ratios during this period. This improvement in processing efficiency continues into early 2022, reaching a low point of 287 days in the second quarter. However, from the third quarter of 2022 onwards, the processing period begins to increase, peaking at 573 days by the third quarter of 2024. Following this peak, there is a slight decrease at the end of the observed period, finishing at 570 days in the second quarter of 2025. This lengthening indicates slowing inventory movement, aligning with the decreasing trend in inventory turnover ratios during the same time frame.

Overall Trends and Insights

The data depict an inverse relationship between inventory turnover and average inventory processing period, as expected, where higher turnover corresponds with shorter processing periods. Early 2021 to mid-2022 shows operational improvements reflected by rising turnover and decreasing days in inventory, suggesting effective inventory management and faster turnover. Post mid-2022, the company experiences a reversal, with turnover ratio declines and processing periods lengthening, implying slower inventory movement and potential challenges in inventory management or shifts in demand and supply dynamics. The stabilization observed in recent quarters suggests the company may have reached a new equilibrium in inventory handling. Continuous monitoring is advisable to identify whether these trends indicate structural changes or temporary fluctuations.

Receivables Turnover Ratio

The receivables turnover ratio shows variability over the observed periods starting from March 31, 2020, with an initial ratio of 2.07 in March 2021. The ratio increased to a peak of 3.41 by June 2022, indicating an improvement in the efficiency of collecting receivables during this time. After this peak, a decline followed, reaching approximately 2.28 by March 2023. Subsequently, the ratio stabilized in a range near 2.3 to 2.5 through to June 2025, demonstrating moderate fluctuations but generally maintaining a consistent turnover rate.

Average Receivable Collection Period

The average receivable collection period exhibits an inverse trend relative to the receivables turnover ratio. Starting at 177 days in March 2021, it decreased steadily to a low of 107 days in June 2022, reflecting faster collection of receivables. After this low point, the collection period increased again, reaching around 160 days by March 2023 and maintaining a range between 144 to 161 days through June 2025. This suggests a reversion to longer collection times compared to the mid-2022 low, stabilizing in a moderately extended collection period relative to earlier years.

Overall Trend Analysis

The data reflects a period of improving receivable management efficiency through mid-2022, as indicated by rising turnover and declining collection days. However, post mid-2022, the trend reversed, showing a decrease in turnover efficiency and an increase in collection days, though these figures stabilized in subsequent quarters without extreme volatility. This pattern may suggest the company experienced temporary operational improvements or changes in credit policy, followed by a normalization phase. The consistency in turnover ratio and collection period in the latter periods indicates a steady state in receivables management.

Inventory Processing Period

The average inventory processing period shows a fluctuating trend over the observed quarters. Starting at 625 days in March 2021, it increased slightly to 653 days by June 2021 before declining substantially to 445 days in September 2021 and further to 415 days in December 2021. This decline continued, reaching a low of 287 days in June 2022. After this trough, the period generally increased again, peaking at 582 days in September 2024, before slightly decreasing to 570 days in June 2025. Overall, the inventory processing period demonstrates volatility with periods of both significant reduction and resurgence.

Receivable Collection Period

The average receivable collection period presented variability with an overall moderate downward trend in the earlier periods, starting at 177 days in March 2021 and decreasing to 107 days in June 2022. Following this, the period showed some fluctuations, generally ranging between 130 and 160 days, reflecting some instability in collection times. For the most recent quarters, the period oscillated around the mid-150 days mark, ending at 144 days in June 2025. This pattern implies a partial recovery in collection efficiency after the low point in mid-2022 but maintaining a relatively stable collection timeframe thereafter.

Operating Cycle

The operating cycle, calculated as the sum of the inventory processing period and the receivable collection period, aligns closely with the trends observed in the individual components. Initially rising from 802 days in March 2021 to 819 days in June 2021, it then declined sharply to 562 days by December 2021 and bottomed at 394 days in June 2022. Subsequently, it increased again to peak at 734 days in September 2024 before slightly dropping to 714 days by June 2025. This pattern highlights the operational efficiency variations, with notable improvement in mid-2022 followed by a gradual lengthening of the operating cycle towards the later periods.

Payables Turnover Ratio

The payables turnover ratio data begins from March 31, 2021. Initially, the ratio was 2.36 and showed a slight decline to 2.23 in June 2021. This was followed by a sharp increase to 3.42 in September 2021 and further upward movement to a peak of 5.39 in June 2022. After this peak, the ratio decreased steadily to 3.74 in December 2022, then declined further to 2.65 by March 2023. Subsequently, it experienced fluctuations, rising to 3.43 in December 2023 and dipping again to 2.67 in June 2024. The ratio then showed an increasing trend towards the end of the period, reaching 3.87 in September 2024 before declining again to 2.83 by June 2025. Overall, the ratio exhibits cyclical behavior with notable peaks and troughs, indicating varying efficiency in payables management over time.

Average Payables Payment Period (Days)

The average payables payment period inversely reflects the payables turnover ratio and data starts correspondingly from March 31, 2021. The number of days to pay suppliers began at 155 days and increased to 164 days in June 2021. This was followed by a significant reduction in the payment period to 86 days by December 2021 and further declines to a low of 68 days in June 2022. After mid-2022, the payment period increased, reaching 138 days in March 2023. Through late 2023 and 2024, the payment period fluctuated between 94 and 146 days. Towards the end of the analyzed period, the days slightly decreased again to 129 days in June 2025. The trend suggests alternating periods of faster and slower payments to suppliers, reflecting changing liquidity management priorities and operational cash cycles.

Overall Insight

The financial indicators of payables turnover and average payment period reveal considerable variability in how payables are managed quarterly. Peaks in turnover ratio associate with troughs in payment duration, indicative of more rapid payment cycles in certain quarters. Conversely, lower turnover ratios with higher payment days suggest extended payment cycles potentially aimed at optimizing cash flow. This alternating pattern points to strategic adjustments in working capital management, possibly in response to internal cash requirements or external market conditions. No consistent linear trend is observed, rather a fluctuating dynamic over the analyzed periods.

Inventory Processing Period

The average inventory processing period shows a general downward trend starting from a peak of 653 days in June 2020, declining to 292 days by March 2022. Following this reduction, there is an upward trend, with the period increasing steadily to around 570-582 days from March 2024 through June 2025. This suggests initial improvements in inventory turnover efficiency, followed by a gradual lengthening of the inventory holding time in recent years.

Receivable Collection Period

The average receivable collection period fluctuates moderately over the observed periods. It decreases from 177 days in June 2020 to a trough of about 107 days in June 2022, indicating improved collection efficiency during this period. Afterward, it exhibits variability within a range of approximately 144 to 161 days, peaking slightly in late 2023. The general pattern shows an initial improvement followed by stabilization with some fluctuations.

Payables Payment Period

The average payables payment period declines sharply from 164 days in June 2020 to a low of 68 days in June 2022, reflecting a tendency towards faster payments. Subsequently, the payment period rises again, fluctuating between 94 and 146 days up to mid-2025. The data suggests a strategic shift from prolonging payable durations toward quicker payments, then partially reverting to longer payment periods in later quarters.

Cash Conversion Cycle

The cash conversion cycle mirrors the trends observed in its components. It remains relatively high during 2020, peaking at 655 days in June 2020, then declines substantially to 326 days by June 2022, indicating improved operational efficiency and working capital management. From mid-2022 onwards, the cycle lengthens again, stabilizing between approximately 555 and 640 days through to mid-2025. The pattern implies an initial efficient cash flow cycle followed by a gradual increase in the operational cash conversion time.