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)
Intuitive Surgical Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Intuitive Surgical Inc. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Intuitive Surgical Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Intuitive Surgical Inc. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Intuitive Surgical Inc. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| 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. | Intuitive Surgical Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Intuitive Surgical Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Intuitive Surgical Inc. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
| 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. | Intuitive Surgical Inc. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023. |
| 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. | Intuitive Surgical Inc. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
Inventory Turnover
Intuitive Surgical Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenue | 2,394,600) | 2,026,200) | 1,751,600) | 1,497,200) | 1,368,300) | |
| Inventory | 1,220,600) | 893,200) | 587,100) | 601,500) | 595,500) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 1.96 | 2.27 | 2.98 | 2.49 | 2.30 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Abbott Laboratories | 2.74 | 3.10 | 3.59 | 2.99 | 3.07 | |
| Cigna Group | 23.70 | 26.13 | 31.58 | 32.70 | 36.70 | |
| CVS Health Corp. | 16.83 | 14.05 | 13.52 | 11.88 | 12.06 | |
| Danaher Corp. | 3.80 | 4.03 | 4.16 | 4.28 | 4.87 | |
| Medtronic PLC | 2.03 | 2.20 | 2.43 | 2.23 | 2.44 | |
| Inventory Turnover, Sector | ||||||
| Health Care Equipment & Services | 23.70 | 21.72 | 22.11 | 19.76 | 20.76 | |
| Inventory Turnover, Industry | ||||||
| Health Care | 10.97 | 10.98 | 11.07 | 9.97 | 10.08 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Inventory turnover = Cost of revenue ÷ Inventory
= 2,394,600 ÷ 1,220,600 = 1.96
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. | Intuitive Surgical Inc. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Intuitive Surgical Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 7,124,100) | 6,222,200) | 5,710,100) | 4,358,400) | 4,478,500) | |
| Accounts receivable, net of allowances | 1,130,200) | 942,100) | 782,700) | 645,500) | 645,200) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.30 | 6.60 | 7.30 | 6.75 | 6.94 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 6.11 | 7.02 | 6.64 | 5.40 | 5.88 | |
| Cigna Group | 17.06 | 18.64 | 19.35 | 19.47 | 20.05 | |
| CVS Health Corp. | 10.12 | 11.79 | 11.91 | 12.32 | 13.04 | |
| Danaher Corp. | 6.09 | 6.40 | 6.36 | 5.51 | 5.61 | |
| Elevance Health Inc. | 18.08 | 18.81 | 20.66 | 19.72 | 18.20 | |
| Humana Inc. | 51.75 | 55.25 | 45.69 | 66.78 | 60.97 | |
| Medtronic PLC | 5.21 | 5.71 | 5.51 | 6.22 | 4.91 | |
| UnitedHealth Group Inc. | 17.27 | 18.22 | 20.07 | 19.86 | 20.32 | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 13.16 | 14.20 | 14.42 | 14.47 | 14.45 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 9.04 | 9.74 | 9.53 | 9.60 | 9.90 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowances
= 7,124,100 ÷ 1,130,200 = 6.30
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. | Intuitive Surgical Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Intuitive Surgical Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenue | 2,394,600) | 2,026,200) | 1,751,600) | 1,497,200) | 1,368,300) | |
| Accounts payable | 188,700) | 147,000) | 121,200) | 81,600) | 123,500) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 12.69 | 13.78 | 14.45 | 18.35 | 11.08 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.19 | 4.15 | 4.21 | 3.80 | 4.07 | |
| Cigna Group | 6.75 | 7.31 | 7.68 | 7.75 | 9.34 | |
| CVS Health Corp. | 20.36 | 18.07 | 19.14 | 19.72 | 20.13 | |
| Danaher Corp. | 5.58 | 5.45 | 4.48 | 4.79 | 5.23 | |
| Elevance Health Inc. | 7.72 | 7.47 | 7.59 | 7.75 | 9.25 | |
| Humana Inc. | 8.63 | 8.17 | 8.35 | 7.57 | 8.97 | |
| Medtronic PLC | 4.03 | 4.46 | 4.98 | 4.72 | 4.69 | |
| UnitedHealth Group Inc. | 7.47 | 7.26 | 7.63 | 7.29 | 7.21 | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 9.11 | 8.83 | 9.10 | 9.03 | 9.84 | |
| Payables Turnover, Industry | ||||||
| Health Care | 7.85 | 7.53 | 7.68 | 7.52 | 8.05 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 2,394,600 ÷ 188,700 = 12.69
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. | Intuitive Surgical Inc. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
Intuitive Surgical Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 7,888,000) | 6,253,000) | 5,844,900) | 6,625,900) | 4,662,600) | |
| Less: Current liabilities | 1,658,700) | 1,422,100) | 1,149,800) | 965,200) | 1,030,200) | |
| Working capital | 6,229,300) | 4,830,900) | 4,695,100) | 5,660,700) | 3,632,400) | |
| Revenue | 7,124,100) | 6,222,200) | 5,710,100) | 4,358,400) | 4,478,500) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 1.14 | 1.29 | 1.22 | 0.77 | 1.23 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.54 | 4.48 | 3.87 | 4.06 | 6.64 | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Danaher Corp. | 4.22 | 4.20 | 8.40 | 3.48 | 0.87 | |
| Elevance Health Inc. | 7.83 | 8.37 | 7.23 | 6.39 | 6.11 | |
| Humana Inc. | 9.47 | 10.27 | 8.67 | 7.42 | 7.19 | |
| Medtronic PLC | 2.47 | 2.97 | 2.15 | 2.48 | 2.26 | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 62.52 | 49.78 | 36.72 | 34.37 | 24.40 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 22.08 | 20.51 | 14.48 | 14.33 | 9.16 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Working capital turnover = Revenue ÷ Working capital
= 7,124,100 ÷ 6,229,300 = 1.14
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. | Intuitive Surgical Inc. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Inventory Processing Period
Intuitive Surgical Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 1.96 | 2.27 | 2.98 | 2.49 | 2.30 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 186 | 161 | 122 | 147 | 159 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Abbott Laboratories | 133 | 118 | 102 | 122 | 119 | |
| Cigna Group | 15 | 14 | 12 | 11 | 10 | |
| CVS Health Corp. | 22 | 26 | 27 | 31 | 30 | |
| Danaher Corp. | 96 | 91 | 88 | 85 | 75 | |
| Medtronic PLC | 180 | 166 | 150 | 164 | 150 | |
| Average Inventory Processing Period, Sector | ||||||
| Health Care Equipment & Services | 15 | 17 | 17 | 18 | 18 | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 33 | 33 | 33 | 37 | 36 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.96 = 186
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. | Intuitive Surgical Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Receivable Collection Period
Intuitive Surgical Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.30 | 6.60 | 7.30 | 6.75 | 6.94 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 58 | 55 | 50 | 54 | 53 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | 60 | 52 | 55 | 68 | 62 | |
| Cigna Group | 21 | 20 | 19 | 19 | 18 | |
| CVS Health Corp. | 36 | 31 | 31 | 30 | 28 | |
| Danaher Corp. | 60 | 57 | 57 | 66 | 65 | |
| Elevance Health Inc. | 20 | 19 | 18 | 19 | 20 | |
| Humana Inc. | 7 | 7 | 8 | 5 | 6 | |
| Medtronic PLC | 70 | 64 | 66 | 59 | 74 | |
| UnitedHealth Group Inc. | 21 | 20 | 18 | 18 | 18 | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 28 | 26 | 25 | 25 | 25 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 40 | 37 | 38 | 38 | 37 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.30 = 58
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. | Intuitive Surgical Inc. number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
Intuitive Surgical Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 186 | 161 | 122 | 147 | 159 | |
| Average receivable collection period | 58 | 55 | 50 | 54 | 53 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 244 | 216 | 172 | 201 | 212 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Abbott Laboratories | 193 | 170 | 157 | 190 | 181 | |
| Cigna Group | 36 | 34 | 31 | 30 | 28 | |
| CVS Health Corp. | 58 | 57 | 58 | 61 | 58 | |
| Danaher Corp. | 156 | 148 | 145 | 151 | 140 | |
| Medtronic PLC | 250 | 230 | 216 | 223 | 224 | |
| Operating Cycle, Sector | ||||||
| Health Care Equipment & Services | 43 | 43 | 42 | 43 | 43 | |
| Operating Cycle, Industry | ||||||
| Health Care | 73 | 70 | 71 | 75 | 73 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 186 + 58 = 244
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. | Intuitive Surgical Inc. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
Intuitive Surgical Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 12.69 | 13.78 | 14.45 | 18.35 | 11.08 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 29 | 26 | 25 | 20 | 33 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | 87 | 88 | 87 | 96 | 90 | |
| Cigna Group | 54 | 50 | 48 | 47 | 39 | |
| CVS Health Corp. | 18 | 20 | 19 | 19 | 18 | |
| Danaher Corp. | 65 | 67 | 82 | 76 | 70 | |
| Elevance Health Inc. | 47 | 49 | 48 | 47 | 39 | |
| Humana Inc. | 42 | 45 | 44 | 48 | 41 | |
| Medtronic PLC | 91 | 82 | 73 | 77 | 78 | |
| UnitedHealth Group Inc. | 49 | 50 | 48 | 50 | 51 | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 40 | 41 | 40 | 40 | 37 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 47 | 48 | 48 | 49 | 45 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.69 = 29
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. | Intuitive Surgical Inc. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023. |
Cash Conversion Cycle
Intuitive Surgical Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 186 | 161 | 122 | 147 | 159 | |
| Average receivable collection period | 58 | 55 | 50 | 54 | 53 | |
| Average payables payment period | 29 | 26 | 25 | 20 | 33 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 215 | 190 | 147 | 181 | 179 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Abbott Laboratories | 106 | 82 | 70 | 94 | 91 | |
| Cigna Group | -18 | -16 | -17 | -17 | -11 | |
| CVS Health Corp. | 40 | 37 | 39 | 42 | 40 | |
| Danaher Corp. | 91 | 81 | 63 | 75 | 70 | |
| Medtronic PLC | 159 | 148 | 143 | 146 | 146 | |
| Cash Conversion Cycle, Sector | ||||||
| Health Care Equipment & Services | 3 | 2 | 2 | 3 | 6 | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 26 | 22 | 23 | 26 | 28 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 186 + 58 – 29 = 215
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. | Intuitive Surgical Inc. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |