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Microsoft Excel LibreOffice Calc

Express Scripts Holding Co. (NASDAQ:ESRX)


Analysis of Short-term (Operating) Activity Ratios

Beginner level


Short-term Activity Ratios (Summary)

Express Scripts Holding Co., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Turnover Ratios
Inventory turnover 42.97 46.79 46.14 43.99 51.29
Receivables turnover 14.18 14.20 15.14 16.87 25.88
Payables turnover 24.31 23.65 27.04 29.63 33.09
Working capital turnover
Average No. Days
Average inventory processing period 8 8 8 8 7
Add: Average receivable collection period 26 26 24 22 14
Operating cycle 34 34 32 30 21
Less: Average payables payment period 15 15 13 12 11
Cash conversion cycle 19 19 19 18 10

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Express Scripts Holding Co.’s inventory turnover ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Receivables turnover An activity ratio equal to revenue divided by receivables. Express Scripts Holding Co.’s receivables turnover ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Express Scripts Holding Co.’s payables turnover ratio decreased from 2015 to 2016 but then slightly increased from 2016 to 2017.
Working capital turnover An activity ratio calculated as revenue divided by working capital.

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.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
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.

Inventory Turnover

Express Scripts Holding Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in thousands)
Cost of revenues 91,302,500  91,667,000  93,349,900  92,962,000  95,966,400 
Inventories 2,124,900  1,959,000  2,023,100  2,113,200  1,871,100 
Short-term Activity Ratio
Inventory turnover1 42.97 46.79 46.14 43.99 51.29
Benchmarks
Inventory Turnover, Competitors2
Becton, Dickinson & Co. 3.38 3.78 2.85 2.77
Boston Scientific Corp. 2.41 2.54 2.14
Danaher Corp. 4.42 4.42 4.68
Intuitive Surgical Inc. 3.88 4.47 4.80
Medtronic PLC 2.78 2.63 1.82 2.51
Stryker Corp. 1.73 1.89 2.04
Thermo Fisher Scientific Inc. 3.86 4.48 4.62
Inventory Turnover, Sector
Health Care Equipment & Services 14.33 14.79 12.76
Inventory Turnover, Industry
Health Care 5.43 5.49 4.86

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

1 2017 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 91,302,500 ÷ 2,124,900 = 42.97

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. Express Scripts Holding Co.’s inventory turnover ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Receivables Turnover

Express Scripts Holding Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in thousands)
Revenues 100,064,600  100,287,500  101,751,800  100,887,100  104,098,800 
Receivables, net 7,056,300  7,062,100  6,721,300  5,979,800  4,022,900 
Short-term Activity Ratio
Receivables turnover1 14.18 14.20 15.14 16.87 25.88
Benchmarks
Receivables Turnover, Competitors2
Becton, Dickinson & Co. 6.93 7.72 6.35 7.12
Boston Scientific Corp. 5.84 5.70 5.86
Danaher Corp. 5.20 5.30 5.19
Intuitive Surgical Inc. 6.11 6.29 6.05
Medtronic PLC 5.31 5.18 3.96 4.46
Stryker Corp. 5.66 5.76 5.98
Thermo Fisher Scientific Inc. 5.39 5.99 6.67
UnitedHealth Group Inc. 20.92 22.57 23.98
Receivables Turnover, Sector
Health Care Equipment & Services 10.71 11.12 10.58
Receivables Turnover, Industry
Health Care 7.23 7.52 7.26

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

1 2017 Calculation
Receivables turnover = Revenues ÷ Receivables, net
= 100,064,600 ÷ 7,056,300 = 14.18

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. Express Scripts Holding Co.’s receivables turnover ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

Payables Turnover

Express Scripts Holding Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in thousands)
Cost of revenues 91,302,500  91,667,000  93,349,900  92,962,000  95,966,400 
Accounts payable 3,755,700  3,875,700  3,451,800  3,137,300  2,900,000 
Short-term Activity Ratio
Payables turnover1 24.31 23.65 27.04 29.63 33.09
Benchmarks
Payables Turnover, Competitors2
Becton, Dickinson & Co. 7.72 9.76 8.85 10.34
Boston Scientific Corp. 4.89 5.42 10.40
Danaher Corp. 5.39 5.08 4.78
Intuitive Surgical Inc. 11.33 11.89 15.33
Medtronic PLC 5.37 5.35 3.92 5.84
Stryker Corp. 8.77 8.76 8.16
Thermo Fisher Scientific Inc. 8.03 10.69 11.20
UnitedHealth Group Inc. 8.63 8.63 8.38
Payables Turnover, Sector
Health Care Equipment & Services 8.06 8.21 7.82
Payables Turnover, Industry
Health Care 5.80 5.96 5.79

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

1 2017 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 91,302,500 ÷ 3,755,700 = 24.31

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. Express Scripts Holding Co.’s payables turnover ratio decreased from 2015 to 2016 but then slightly increased from 2016 to 2017.

Working Capital Turnover

Express Scripts Holding Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in thousands)
Current assets 11,957,100  12,363,400  12,059,500  10,568,100  8,491,400 
Less: Current liabilities 17,846,400  16,428,100  17,155,300  17,016,900  13,235,300 
Working capital (5,889,300) (4,064,700) (5,095,800) (6,448,800) (4,743,900)
 
Revenues 100,064,600  100,287,500  101,751,800  100,887,100  104,098,800 
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Becton, Dickinson & Co. 0.79 6.35 6.20 2.17
Boston Scientific Corp. 7.18
Danaher Corp. 8.91 12.34
Intuitive Surgical Inc. 1.49 1.02 1.40
Medtronic PLC 2.79 1.75 0.93 1.09
Stryker Corp. 2.76 2.40 2.24
Thermo Fisher Scientific Inc. 8.82 8.48 10.64
UnitedHealth Group Inc.
Working Capital Turnover, Sector
Health Care Equipment & Services 14.04 23.59 10.85
Working Capital Turnover, Industry
Health Care 4.29 3.54 3.72

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

1 2017 Calculation
Working capital turnover = Revenues ÷ Working capital
= 100,064,600 ÷ -5,889,300 =

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.

Average Inventory Processing Period

Express Scripts Holding Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data
Inventory turnover 42.97 46.79 46.14 43.99 51.29
Short-term Activity Ratio (no. days)
Average inventory processing period1 8 8 8 8 7
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Becton, Dickinson & Co. 108 97 128 132
Boston Scientific Corp. 152 144 171
Danaher Corp. 83 83 78
Intuitive Surgical Inc. 94 82 76
Medtronic PLC 131 139 200 145
Stryker Corp. 211 193 179
Thermo Fisher Scientific Inc. 95 82 79
Average Inventory Processing Period, Sector
Health Care Equipment & Services 25 25 29
Average Inventory Processing Period, Industry
Health Care 67 66 75

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

1 2017 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 42.97 = 8

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.

Average Receivable Collection Period

Express Scripts Holding Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data
Receivables turnover 14.18 14.20 15.14 16.87 25.88
Short-term Activity Ratio (no. days)
Average receivable collection period1 26 26 24 22 14
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Becton, Dickinson & Co. 53 47 57 51
Boston Scientific Corp. 62 64 62
Danaher Corp. 70 69 70
Intuitive Surgical Inc. 60 58 60
Medtronic PLC 69 70 92 82
Stryker Corp. 64 63 61
Thermo Fisher Scientific Inc. 68 61 55
UnitedHealth Group Inc. 17 16 15
Average Receivable Collection Period, Sector
Health Care Equipment & Services 34 33 35
Average Receivable Collection Period, Industry
Health Care 50 49 50

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

1 2017 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 14.18 = 26

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.

Operating Cycle

Express Scripts Holding Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data
Average inventory processing period 8 8 8 8 7
Average receivable collection period 26 26 24 22 14
Short-term Activity Ratio
Operating cycle1 34 34 32 30 21
Benchmarks
Operating Cycle, Competitors2
Becton, Dickinson & Co. 161 144 185 183
Boston Scientific Corp. 214 208 233
Danaher Corp. 153 152 148
Intuitive Surgical Inc. 154 140 136
Medtronic PLC 200 209 292 227
Stryker Corp. 275 256 240
Thermo Fisher Scientific Inc. 163 143 134
Operating Cycle, Sector
Health Care Equipment & Services 59 58 64
Operating Cycle, Industry
Health Care 117 115 125

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

1 2017 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 8 + 26 = 34

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.

Average Payables Payment Period

Express Scripts Holding Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data
Payables turnover 24.31 23.65 27.04 29.63 33.09
Short-term Activity Ratio (no. days)
Average payables payment period1 15 15 13 12 11
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Becton, Dickinson & Co. 47 37 41 35
Boston Scientific Corp. 75 67 35
Danaher Corp. 68 72 76
Intuitive Surgical Inc. 32 31 24
Medtronic PLC 68 68 93 63
Stryker Corp. 42 42 45
Thermo Fisher Scientific Inc. 45 34 33
UnitedHealth Group Inc. 42 42 44
Average Payables Payment Period, Sector
Health Care Equipment & Services 45 44 47
Average Payables Payment Period, Industry
Health Care 63 61 63

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

1 2017 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 24.31 = 15

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

Express Scripts Holding Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data
Average inventory processing period 8 8 8 8 7
Average receivable collection period 26 26 24 22 14
Average payables payment period 15 15 13 12 11
Short-term Activity Ratio
Cash conversion cycle1 19 19 19 18 10
Benchmarks
Cash Conversion Cycle, Competitors2
Becton, Dickinson & Co. 114 107 144 148
Boston Scientific Corp. 139 141 198
Danaher Corp. 85 80 72
Intuitive Surgical Inc. 122 109 112
Medtronic PLC 132 141 199 164
Stryker Corp. 233 214 195
Thermo Fisher Scientific Inc. 118 109 101
Cash Conversion Cycle, Sector
Health Care Equipment & Services 14 14 17
Cash Conversion Cycle, Industry
Health Care 54 54 62

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-23), 10-K (filing date: 2014-02-20).

1 2017 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 8 + 2615 = 19

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.