Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

Intuitive Surgical Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 2.98 2.49 2.30 2.74 3.88
Receivables turnover 7.30 6.75 6.94 5.46 6.11
Payables turnover 14.45 18.35 11.08 11.12 11.33
Working capital turnover 1.22 0.77 1.23 1.06 1.49
Average No. Days
Average inventory processing period 122 147 159 133 94
Add: Average receivable collection period 50 54 53 67 60
Operating cycle 172 201 212 200 154
Less: Average payables payment period 25 20 33 33 32
Cash conversion cycle 147 181 179 167 122

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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 improved from 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Intuitive Surgical Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Intuitive Surgical Inc. payables turnover ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Intuitive Surgical Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

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 improved from 2019 to 2020 and from 2020 to 2021.
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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Intuitive Surgical Inc. operating cycle improved from 2019 to 2020 and from 2020 to 2021.
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 decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Inventory Turnover

Intuitive Surgical Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Cost of revenue 1,751,600  1,497,200  1,368,300  1,120,100  934,800 
Inventory 587,100  601,500  595,500  409,000  241,200 
Short-term Activity Ratio
Inventory turnover1 2.98 2.49 2.30 2.74 3.88
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories 3.59 2.99 3.07 3.35 3.43
Bristol-Myers Squibb Co. 4.74 5.68 1.88 5.48 5.20
CVS Health Corp. 13.52 11.88 12.06 9.91 10.21
Danaher Corp. 4.16 4.28 4.87 4.60 4.42
Medtronic PLC 2.43 2.23 2.44 2.53 2.78
Inventory Turnover, Sector
Health Care Equipment & Services 17.80 15.74 15.24 15.31 15.51
Inventory Turnover, Industry
Health Care 8.88 8.04 8.15 7.97 7.77

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Inventory turnover = Cost of revenue ÷ Inventory
= 1,751,600 ÷ 587,100 = 2.98

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 improved from 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

Intuitive Surgical Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Revenue 5,710,100  4,358,400  4,478,500  3,724,200  3,128,900 
Accounts receivable, net of allowances 782,700  645,500  645,200  682,300  511,900 
Short-term Activity Ratio
Receivables turnover1 7.30 6.75 6.94 5.46 6.11
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 6.64 5.40 5.88 5.90 5.22
Anthem Inc. 20.66 19.72 18.20 19.13 23.20
Bristol-Myers Squibb Co. 5.65 5.72 3.89 4.66 4.43
CVS Health Corp. 11.91 12.32 13.04 11.00 14.02
Danaher Corp. 6.36 5.51 5.61 5.70 5.20
Medtronic PLC 5.51 6.22 4.91 5.00 5.31
UnitedHealth Group Inc. 15.91 15.65 16.05 15.64 16.56
Receivables Turnover, Sector
Health Care Equipment & Services 11.31 11.22 11.09 10.53 11.51
Receivables Turnover, Industry
Health Care 8.19 8.12 8.49 8.17 8.44

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowances
= 5,710,100 ÷ 782,700 = 7.30

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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Payables Turnover

Intuitive Surgical Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Cost of revenue 1,751,600  1,497,200  1,368,300  1,120,100  934,800 
Accounts payable 121,200  81,600  123,500  100,700  82,500 
Short-term Activity Ratio
Payables turnover1 14.45 18.35 11.08 11.12 11.33
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 4.21 3.80 4.07 4.27 5.14
Anthem Inc. 7.59 7.75 9.25 9.65 9.04
Bristol-Myers Squibb Co. 3.37 4.34 3.30 3.46 2.70
CVS Health Corp. 19.14 19.72 20.13 18.27 17.63
Danaher Corp. 4.48 4.79 5.23 5.13 5.39
Medtronic PLC 4.98 4.72 4.69 5.56 5.37
UnitedHealth Group Inc. 7.63 7.29 7.21 7.31 7.28
Payables Turnover, Sector
Health Care Equipment & Services 9.28 9.33 9.72 9.39 9.26
Payables Turnover, Industry
Health Care 7.61 7.46 7.79 7.58 7.42

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 1,751,600 ÷ 121,200 = 14.45

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 increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Working Capital Turnover

Intuitive Surgical Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Current assets 5,844,900  6,625,900  4,662,600  4,333,200  2,810,900 
Less: Current liabilities 1,149,800  965,200  1,030,200  820,600  704,100 
Working capital 4,695,100  5,660,700  3,632,400  3,512,600  2,106,800 
 
Revenue 5,710,100  4,358,400  4,478,500  3,724,200  3,128,900 
Short-term Activity Ratio
Working capital turnover1 1.22 0.77 1.23 1.06 1.49
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 3.87 4.06 6.64 5.44 2.44
Anthem Inc. 7.23 6.39 6.11 6.91 6.48
Bristol-Myers Squibb Co. 3.95 3.72 2.28 3.32 3.64
CVS Health Corp. 157.15 318.01
Danaher Corp. 8.40 3.48 0.87 8.83 8.91
Medtronic PLC 2.15 2.48 2.26 2.32 2.79
UnitedHealth Group Inc.
Working Capital Turnover, Sector
Health Care Equipment & Services 21.48 19.96 13.85 18.86 16.68
Working Capital Turnover, Industry
Health Care 11.05 11.19 7.23 6.36 5.91

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Working capital turnover = Revenue ÷ Working capital
= 5,710,100 ÷ 4,695,100 = 1.22

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 deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Average Inventory Processing Period

Intuitive Surgical Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Inventory turnover 2.98 2.49 2.30 2.74 3.88
Short-term Activity Ratio (no. days)
Average inventory processing period1 122 147 159 133 94
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories 102 122 119 109 107
Bristol-Myers Squibb Co. 77 64 194 67 70
CVS Health Corp. 27 31 30 37 36
Danaher Corp. 88 85 75 79 83
Medtronic PLC 150 164 150 144 131
Average Inventory Processing Period, Sector
Health Care Equipment & Services 21 23 24 24 24
Average Inventory Processing Period, Industry
Health Care 41 45 45 46 47

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.98 = 122

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 improved from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

Intuitive Surgical Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Receivables turnover 7.30 6.75 6.94 5.46 6.11
Short-term Activity Ratio (no. days)
Average receivable collection period1 50 54 53 67 60
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 55 68 62 62 70
Anthem Inc. 18 19 20 19 16
Bristol-Myers Squibb Co. 65 64 94 78 82
CVS Health Corp. 31 30 28 33 26
Danaher Corp. 57 66 65 64 70
Medtronic PLC 66 59 74 73 69
UnitedHealth Group Inc. 23 23 23 23 22
Average Receivable Collection Period, Sector
Health Care Equipment & Services 32 33 33 35 32
Average Receivable Collection Period, Industry
Health Care 45 45 43 45 43

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.30 = 50

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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Operating Cycle

Intuitive Surgical Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 122 147 159 133 94
Average receivable collection period 50 54 53 67 60
Short-term Activity Ratio
Operating cycle1 172 201 212 200 154
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories 157 190 181 171 177
Bristol-Myers Squibb Co. 142 128 288 145 152
CVS Health Corp. 58 61 58 70 62
Danaher Corp. 145 151 140 143 153
Medtronic PLC 216 223 224 217 200
Operating Cycle, Sector
Health Care Equipment & Services 53 56 57 59 56
Operating Cycle, Industry
Health Care 86 90 88 91 90

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 122 + 50 = 172

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 improved from 2019 to 2020 and from 2020 to 2021.

Average Payables Payment Period

Intuitive Surgical Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Payables turnover 14.45 18.35 11.08 11.12 11.33
Short-term Activity Ratio (no. days)
Average payables payment period1 25 20 33 33 32
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 87 96 90 85 71
Anthem Inc. 48 47 39 38 40
Bristol-Myers Squibb Co. 108 84 110 105 135
CVS Health Corp. 19 19 18 20 21
Danaher Corp. 82 76 70 71 68
Medtronic PLC 73 77 78 66 68
UnitedHealth Group Inc. 48 50 51 50 50
Average Payables Payment Period, Sector
Health Care Equipment & Services 39 39 38 39 39
Average Payables Payment Period, Industry
Health Care 48 49 47 48 49

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 14.45 = 25

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 decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Cash Conversion Cycle

Intuitive Surgical Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 122 147 159 133 94
Average receivable collection period 50 54 53 67 60
Average payables payment period 25 20 33 33 32
Short-term Activity Ratio
Cash conversion cycle1 147 181 179 167 122
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories 70 94 91 86 106
Bristol-Myers Squibb Co. 34 44 178 40 17
CVS Health Corp. 39 42 40 50 41
Danaher Corp. 63 75 70 72 85
Medtronic PLC 143 146 146 151 132
Cash Conversion Cycle, Sector
Health Care Equipment & Services 14 17 19 20 17
Cash Conversion Cycle, Industry
Health Care 38 41 41 43 41

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 122 + 5025 = 147

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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.