Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Abiomed Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Abiomed Inc. inventory turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Abiomed Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Abiomed Inc. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Abiomed Inc. working capital turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Abiomed Inc. number of days of inventory outstanding improved from 2020 to 2021 and from 2021 to 2022. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Abiomed Inc. number of days of receivables outstanding deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Abiomed Inc. operating cycle improved from 2020 to 2021 and from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Abiomed Inc. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022. |
Inventory Turnover
Abiomed Inc., inventory turnover calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of revenue | 188,158) | 161,907) | 151,305) | 129,567) | 98,581) | 70,627) | |
| Inventories, net | 93,981) | 81,059) | 90,088) | 80,942) | 50,204) | 34,931) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 2.00 | 2.00 | 1.68 | 1.60 | 1.96 | 2.02 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Abbott Laboratories | 3.10 | 3.59 | 2.99 | 3.07 | — | — | |
| Cigna Group | 26.13 | 31.58 | 32.70 | 36.70 | — | — | |
| CVS Health Corp. | 14.05 | 13.52 | 11.88 | 12.06 | — | — | |
| Intuitive Surgical Inc. | 2.27 | 2.98 | 2.49 | 2.30 | — | — | |
| Medtronic PLC | 2.20 | 2.43 | 2.23 | 2.44 | 2.53 | — | |
| Shockwave Medical Inc. | 0.87 | 0.96 | 0.70 | 1.42 | — | — | |
| Inventory Turnover, Sector | |||||||
| Health Care Equipment & Services | 23.23 | 23.66 | 20.87 | 21.65 | — | — | |
| Inventory Turnover, Industry | |||||||
| Health Care | 10.72 | 10.84 | 9.79 | 9.91 | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Inventory turnover = Cost of revenue ÷ Inventories, net
= 188,158 ÷ 93,981 = 2.00
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Abiomed Inc. inventory turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Receivables Turnover
Abiomed Inc., receivables turnover calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Revenue | 1,031,753) | 847,522) | 840,883) | 769,432) | 593,749) | 445,304) | |
| Accounts receivable, net | 90,608) | 97,179) | 84,650) | 90,809) | 70,010) | 54,055) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 11.39 | 8.72 | 9.93 | 8.47 | 8.48 | 8.24 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Abbott Laboratories | 7.02 | 6.64 | 5.40 | 5.88 | — | — | |
| Cigna Group | 18.64 | 19.35 | 19.47 | 20.05 | — | — | |
| CVS Health Corp. | 11.79 | 11.91 | 12.32 | 13.04 | — | — | |
| Elevance Health Inc. | 18.81 | 20.66 | 19.72 | 18.20 | — | — | |
| Humana Inc. | 55.25 | 45.69 | 66.78 | 60.97 | — | — | |
| Intuitive Surgical Inc. | 6.60 | 7.30 | 6.75 | 6.94 | — | — | |
| Medtronic PLC | 5.71 | 5.51 | 6.22 | 4.91 | 5.00 | — | |
| Shockwave Medical Inc. | 6.86 | 6.33 | 5.80 | 5.82 | — | — | |
| UnitedHealth Group Inc. | 18.22 | 20.07 | 19.86 | 20.32 | — | — | |
| Receivables Turnover, Sector | |||||||
| Health Care Equipment & Services | 14.72 | 14.99 | 15.09 | 14.96 | — | — | |
| Receivables Turnover, Industry | |||||||
| Health Care | 9.71 | 9.51 | 9.57 | 9.86 | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net
= 1,031,753 ÷ 90,608 = 11.39
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Abiomed Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Payables Turnover
Abiomed Inc., payables turnover calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of revenue | 188,158) | 161,907) | 151,305) | 129,567) | 98,581) | 70,627) | |
| Accounts payable | 35,346) | 34,842) | 32,774) | 32,185) | 23,565) | 20,620) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 5.32 | 4.65 | 4.62 | 4.03 | 4.18 | 3.43 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Abbott Laboratories | 4.15 | 4.21 | 3.80 | 4.07 | — | — | |
| Cigna Group | 7.31 | 7.68 | 7.75 | 9.34 | — | — | |
| CVS Health Corp. | 18.07 | 19.14 | 19.72 | 20.13 | — | — | |
| Elevance Health Inc. | 7.47 | 7.59 | 7.75 | 9.25 | — | — | |
| Humana Inc. | 8.17 | 8.35 | 7.57 | 8.97 | — | — | |
| Intuitive Surgical Inc. | 13.78 | 14.45 | 18.35 | 11.08 | — | — | |
| Medtronic PLC | 4.46 | 4.98 | 4.72 | 4.69 | 5.56 | — | |
| Shockwave Medical Inc. | 9.67 | 11.77 | 14.32 | 6.15 | — | — | |
| UnitedHealth Group Inc. | 7.26 | 7.63 | 7.29 | 7.21 | — | — | |
| Payables Turnover, Sector | |||||||
| Health Care Equipment & Services | 8.91 | 9.25 | 9.16 | 9.95 | — | — | |
| Payables Turnover, Industry | |||||||
| Health Care | 7.53 | 7.67 | 7.51 | 8.04 | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 188,158 ÷ 35,346 = 5.32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Abiomed Inc. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022. |
Working Capital Turnover
Abiomed Inc., working capital turnover calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 976,473) | 787,965) | 635,863) | 677,197) | 494,271) | 326,958) | |
| Less: Current liabilities | 138,457) | 128,969) | 131,885) | 105,998) | 84,682) | 69,617) | |
| Working capital | 838,016) | 658,996) | 503,978) | 571,199) | 409,589) | 257,341) | |
| Revenue | 1,031,753) | 847,522) | 840,883) | 769,432) | 593,749) | 445,304) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 1.23 | 1.29 | 1.67 | 1.35 | 1.45 | 1.73 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Abbott Laboratories | 4.48 | 3.87 | 4.06 | 6.64 | — | — | |
| Cigna Group | — | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | — | |
| Elevance Health Inc. | 8.37 | 7.23 | 6.39 | 6.11 | — | — | |
| Humana Inc. | 10.27 | 8.67 | 7.42 | 7.19 | — | — | |
| Intuitive Surgical Inc. | 1.29 | 1.22 | 0.77 | 1.23 | — | — | |
| Medtronic PLC | 2.97 | 2.15 | 2.48 | 2.26 | 2.32 | — | |
| Shockwave Medical Inc. | 1.24 | 1.01 | 0.31 | 0.22 | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Health Care Equipment & Services | 70.96 | 40.49 | 43.85 | 58.67 | — | — | |
| Working Capital Turnover, Industry | |||||||
| Health Care | 19.44 | 13.83 | 13.69 | 8.99 | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Working capital turnover = Revenue ÷ Working capital
= 1,031,753 ÷ 838,016 = 1.23
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Abiomed Inc. working capital turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Average Inventory Processing Period
Abiomed Inc., average inventory processing period calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 2.00 | 2.00 | 1.68 | 1.60 | 1.96 | 2.02 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 182 | 183 | 217 | 228 | 186 | 181 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Abbott Laboratories | 118 | 102 | 122 | 119 | — | — | |
| Cigna Group | 14 | 12 | 11 | 10 | — | — | |
| CVS Health Corp. | 26 | 27 | 31 | 30 | — | — | |
| Intuitive Surgical Inc. | 161 | 122 | 147 | 159 | — | — | |
| Medtronic PLC | 166 | 150 | 164 | 150 | 144 | — | |
| Shockwave Medical Inc. | 422 | 379 | 519 | 257 | — | — | |
| Average Inventory Processing Period, Sector | |||||||
| Health Care Equipment & Services | 16 | 15 | 17 | 17 | — | — | |
| Average Inventory Processing Period, Industry | |||||||
| Health Care | 34 | 34 | 37 | 37 | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.00 = 182
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Abiomed Inc. number of days of inventory outstanding improved from 2020 to 2021 and from 2021 to 2022. |
Average Receivable Collection Period
Abiomed Inc., average receivable collection period calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 11.39 | 8.72 | 9.93 | 8.47 | 8.48 | 8.24 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 32 | 42 | 37 | 43 | 43 | 44 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Abbott Laboratories | 52 | 55 | 68 | 62 | — | — | |
| Cigna Group | 20 | 19 | 19 | 18 | — | — | |
| CVS Health Corp. | 31 | 31 | 30 | 28 | — | — | |
| Elevance Health Inc. | 19 | 18 | 19 | 20 | — | — | |
| Humana Inc. | 7 | 8 | 5 | 6 | — | — | |
| Intuitive Surgical Inc. | 55 | 50 | 54 | 53 | — | — | |
| Medtronic PLC | 64 | 66 | 59 | 74 | 73 | — | |
| Shockwave Medical Inc. | 53 | 58 | 63 | 63 | — | — | |
| UnitedHealth Group Inc. | 20 | 18 | 18 | 18 | — | — | |
| Average Receivable Collection Period, Sector | |||||||
| Health Care Equipment & Services | 25 | 24 | 24 | 24 | — | — | |
| Average Receivable Collection Period, Industry | |||||||
| Health Care | 38 | 38 | 38 | 37 | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.39 = 32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Abiomed Inc. number of days of receivables outstanding deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Operating Cycle
Abiomed Inc., operating cycle calculation, comparison to benchmarks
No. days
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 182 | 183 | 217 | 228 | 186 | 181 | |
| Average receivable collection period | 32 | 42 | 37 | 43 | 43 | 44 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 214 | 225 | 254 | 271 | 229 | 225 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Abbott Laboratories | 170 | 157 | 190 | 181 | — | — | |
| Cigna Group | 34 | 31 | 30 | 28 | — | — | |
| CVS Health Corp. | 57 | 58 | 61 | 58 | — | — | |
| Intuitive Surgical Inc. | 216 | 172 | 201 | 212 | — | — | |
| Medtronic PLC | 230 | 216 | 223 | 224 | 217 | — | |
| Shockwave Medical Inc. | 475 | 437 | 582 | 320 | — | — | |
| Operating Cycle, Sector | |||||||
| Health Care Equipment & Services | 41 | 39 | 41 | 41 | — | — | |
| Operating Cycle, Industry | |||||||
| Health Care | 72 | 72 | 75 | 74 | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 182 + 32 = 214
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Abiomed Inc. operating cycle improved from 2020 to 2021 and from 2021 to 2022. |
Average Payables Payment Period
Abiomed Inc., average payables payment period calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 5.32 | 4.65 | 4.62 | 4.03 | 4.18 | 3.43 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 69 | 79 | 79 | 91 | 87 | 107 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Abbott Laboratories | 88 | 87 | 96 | 90 | — | — | |
| Cigna Group | 50 | 48 | 47 | 39 | — | — | |
| CVS Health Corp. | 20 | 19 | 19 | 18 | — | — | |
| Elevance Health Inc. | 49 | 48 | 47 | 39 | — | — | |
| Humana Inc. | 45 | 44 | 48 | 41 | — | — | |
| Intuitive Surgical Inc. | 26 | 25 | 20 | 33 | — | — | |
| Medtronic PLC | 82 | 73 | 77 | 78 | 66 | — | |
| Shockwave Medical Inc. | 38 | 31 | 25 | 59 | — | — | |
| UnitedHealth Group Inc. | 50 | 48 | 50 | 51 | — | — | |
| Average Payables Payment Period, Sector | |||||||
| Health Care Equipment & Services | 41 | 39 | 40 | 37 | — | — | |
| Average Payables Payment Period, Industry | |||||||
| Health Care | 48 | 48 | 49 | 45 | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.32 = 69
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Abiomed Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 182 | 183 | 217 | 228 | 186 | 181 | |
| Average receivable collection period | 32 | 42 | 37 | 43 | 43 | 44 | |
| Average payables payment period | 69 | 79 | 79 | 91 | 87 | 107 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 145 | 146 | 175 | 180 | 142 | 118 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Abbott Laboratories | 82 | 70 | 94 | 91 | — | — | |
| Cigna Group | -16 | -17 | -17 | -11 | — | — | |
| CVS Health Corp. | 37 | 39 | 42 | 40 | — | — | |
| Intuitive Surgical Inc. | 190 | 147 | 181 | 179 | — | — | |
| Medtronic PLC | 148 | 143 | 146 | 146 | 151 | — | |
| Shockwave Medical Inc. | 437 | 406 | 557 | 261 | — | — | |
| Cash Conversion Cycle, Sector | |||||||
| Health Care Equipment & Services | 0 | 0 | 1 | 4 | — | — | |
| Cash Conversion Cycle, Industry | |||||||
| Health Care | 24 | 24 | 26 | 29 | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 182 + 32 – 69 = 145
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Abiomed Inc. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022. |