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 (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Intuitive Surgical Inc.’s inventory turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Intuitive Surgical Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Intuitive Surgical Inc.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Intuitive Surgical Inc.’s working capital turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| 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.’s number of days of inventory outstanding deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Intuitive Surgical Inc.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Intuitive Surgical Inc.’s operating cycle deteriorated from 2017 to 2018 and from 2018 to 2019. |
| 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. | Intuitive Surgical Inc.’s cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019. |
Inventory Turnover
Intuitive Surgical Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenue | 1,368,300 | 1,120,100 | 934,800 | 814,300 | 806,500 | |
| Inventory | 595,500 | 409,000 | 241,200 | 182,300 | 167,900 | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 2.30 | 2.74 | 3.88 | 4.47 | 4.80 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 3.49 | 3.56 | 3.38 | 3.78 | 2.85 | |
| Boston Scientific Corp. | 1.97 | 2.41 | 2.41 | 2.54 | 2.14 | |
| Danaher Corp. | 4.87 | 4.60 | 4.42 | 4.42 | 4.68 | |
| Edwards Lifesciences Corp. | 1.74 | 1.55 | 1.58 | 2.01 | 1.82 | |
| Medtronic PLC | 2.44 | 2.53 | 2.78 | 2.63 | 1.82 | |
| Stryker Corp. | 1.58 | 1.58 | 1.73 | 1.89 | 2.04 | |
| Thermo Fisher Scientific Inc. | 4.22 | 4.49 | 3.86 | 4.48 | 4.62 | |
| Inventory Turnover, Sector | ||||||
| Health Care Equipment & Services | 13.52 | 13.80 | 13.83 | 14.39 | 12.46 | |
| Inventory Turnover, Industry | ||||||
| Health Care | 5.33 | 5.73 | 5.44 | 5.51 | 4.84 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
1 2019 Calculation
Inventory turnover = Cost of revenue ÷ Inventory
= 1,368,300 ÷ 595,500 = 2.30
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.’s inventory turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Receivables Turnover
Intuitive Surgical Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 4,478,500 | 3,724,200 | 3,128,900 | 2,704,400 | 2,384,400 | |
| Accounts receivable, net of allowances | 645,200 | 682,300 | 511,900 | 430,200 | 394,300 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.94 | 5.46 | 6.11 | 6.29 | 6.05 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 7.37 | 6.89 | 6.93 | 7.72 | 6.35 | |
| Boston Scientific Corp. | 5.87 | 6.11 | 5.84 | 5.70 | 5.86 | |
| Danaher Corp. | 5.61 | 5.70 | 5.20 | 5.30 | 5.19 | |
| Edwards Lifesciences Corp. | 8.00 | 8.15 | 8.15 | 8.11 | 7.91 | |
| Medtronic PLC | 4.91 | 5.00 | 5.31 | 5.18 | 3.96 | |
| Stryker Corp. | 5.14 | 5.83 | 5.66 | 5.76 | 5.98 | |
| Thermo Fisher Scientific Inc. | 5.87 | 5.89 | 5.39 | 5.99 | 6.67 | |
| UnitedHealth Group Inc. | 20.32 | 19.75 | 20.92 | 22.57 | 23.98 | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 10.82 | 10.68 | 10.67 | 11.08 | 10.54 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 7.37 | 7.45 | 7.29 | 7.57 | 7.30 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
1 2019 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowances
= 4,478,500 ÷ 645,200 = 6.94
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.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Payables Turnover
Intuitive Surgical Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenue | 1,368,300 | 1,120,100 | 934,800 | 814,300 | 806,500 | |
| Accounts payable | 123,500 | 100,700 | 82,500 | 68,500 | 52,600 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 11.08 | 11.12 | 11.33 | 11.89 | 15.33 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 8.24 | 7.89 | 7.72 | 9.76 | 8.85 | |
| Boston Scientific Corp. | 5.75 | 8.06 | 4.89 | 5.42 | 10.40 | |
| Danaher Corp. | 5.23 | 5.13 | 5.39 | 5.08 | 4.78 | |
| Edwards Lifesciences Corp. | 6.18 | 7.01 | 7.51 | 8.21 | 9.66 | |
| Medtronic PLC | 4.69 | 5.56 | 5.37 | 5.35 | 3.92 | |
| Stryker Corp. | 7.69 | 7.22 | 8.77 | 8.76 | 8.16 | |
| Thermo Fisher Scientific Inc. | 7.40 | 8.36 | 8.03 | 10.69 | 11.20 | |
| UnitedHealth Group Inc. | 8.51 | 8.67 | 8.63 | 8.63 | 8.38 | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 7.94 | 8.17 | 8.06 | 8.21 | 7.83 | |
| Payables Turnover, Industry | ||||||
| Health Care | 5.76 | 5.98 | 5.79 | 5.95 | 5.73 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
1 2019 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 1,368,300 ÷ 123,500 = 11.08
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.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019. |
Working Capital Turnover
Intuitive Surgical Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 4,662,600 | 4,333,200 | 2,810,900 | 3,250,400 | 2,195,500 | |
| Less: Current liabilities | 1,030,200 | 820,600 | 704,100 | 596,500 | 491,900 | |
| Working capital | 3,632,400 | 3,512,600 | 2,106,800 | 2,653,900 | 1,703,600 | |
| Revenue | 4,478,500 | 3,724,200 | 3,128,900 | 2,704,400 | 2,384,400 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 1.23 | 1.06 | 1.49 | 1.02 | 1.40 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Becton, Dickinson & Co. | 17.14 | 81.96 | 0.79 | 6.35 | 6.20 | |
| Boston Scientific Corp. | — | — | — | — | 7.18 | |
| Danaher Corp. | 0.87 | 8.83 | 8.91 | — | 12.34 | |
| Edwards Lifesciences Corp. | 2.09 | 2.64 | 3.04 | 1.74 | 1.59 | |
| Medtronic PLC | 2.26 | 2.32 | 2.79 | 1.75 | 0.93 | |
| Stryker Corp. | 2.14 | 2.76 | 2.76 | 2.40 | 2.24 | |
| Thermo Fisher Scientific Inc. | 4.48 | 5.44 | 8.82 | 8.48 | 10.64 | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 10.69 | 24.89 | 13.50 | 20.86 | 10.24 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 5.19 | 5.10 | 4.22 | 3.64 | 3.61 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
1 2019 Calculation
Working capital turnover = Revenue ÷ Working capital
= 4,478,500 ÷ 3,632,400 = 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. | Intuitive Surgical Inc.’s working capital turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Average Inventory Processing Period
Intuitive Surgical Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 2.30 | 2.74 | 3.88 | 4.47 | 4.80 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 159 | 133 | 94 | 82 | 76 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Becton, Dickinson & Co. | 105 | 103 | 108 | 97 | 128 | |
| Boston Scientific Corp. | 185 | 151 | 152 | 144 | 171 | |
| Danaher Corp. | 75 | 79 | 83 | 83 | 78 | |
| Edwards Lifesciences Corp. | 210 | 236 | 231 | 182 | 201 | |
| Medtronic PLC | 150 | 144 | 131 | 139 | 200 | |
| Stryker Corp. | 231 | 231 | 211 | 193 | 179 | |
| Thermo Fisher Scientific Inc. | 87 | 81 | 95 | 82 | 79 | |
| Average Inventory Processing Period, Sector | ||||||
| Health Care Equipment & Services | 27 | 26 | 26 | 25 | 29 | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 68 | 64 | 67 | 66 | 75 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.30 = 159
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.’s number of days of inventory outstanding deteriorated from 2017 to 2018 and from 2018 to 2019. |
Average Receivable Collection Period
Intuitive Surgical Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.94 | 5.46 | 6.11 | 6.29 | 6.05 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 53 | 67 | 60 | 58 | 60 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Becton, Dickinson & Co. | 50 | 53 | 53 | 47 | 57 | |
| Boston Scientific Corp. | 62 | 60 | 62 | 64 | 62 | |
| Danaher Corp. | 65 | 64 | 70 | 69 | 70 | |
| Edwards Lifesciences Corp. | 46 | 45 | 45 | 45 | 46 | |
| Medtronic PLC | 74 | 73 | 69 | 70 | 92 | |
| Stryker Corp. | 71 | 63 | 64 | 63 | 61 | |
| Thermo Fisher Scientific Inc. | 62 | 62 | 68 | 61 | 55 | |
| UnitedHealth Group Inc. | 18 | 18 | 17 | 16 | 15 | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 34 | 34 | 34 | 33 | 35 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 50 | 49 | 50 | 48 | 50 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.94 = 53
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.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Operating Cycle
Intuitive Surgical Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 159 | 133 | 94 | 82 | 76 | |
| Average receivable collection period | 53 | 67 | 60 | 58 | 60 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 212 | 200 | 154 | 140 | 136 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Becton, Dickinson & Co. | 155 | 156 | 161 | 144 | 185 | |
| Boston Scientific Corp. | 247 | 211 | 214 | 208 | 233 | |
| Danaher Corp. | 140 | 143 | 153 | 152 | 148 | |
| Edwards Lifesciences Corp. | 256 | 281 | 276 | 227 | 247 | |
| Medtronic PLC | 224 | 217 | 200 | 209 | 292 | |
| Stryker Corp. | 302 | 294 | 275 | 256 | 240 | |
| Thermo Fisher Scientific Inc. | 149 | 143 | 163 | 143 | 134 | |
| Operating Cycle, Sector | ||||||
| Health Care Equipment & Services | 61 | 60 | 60 | 58 | 64 | |
| Operating Cycle, Industry | ||||||
| Health Care | 118 | 113 | 117 | 114 | 125 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 159 + 53 = 212
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.’s operating cycle deteriorated from 2017 to 2018 and from 2018 to 2019. |
Average Payables Payment Period
Intuitive Surgical Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 11.08 | 11.12 | 11.33 | 11.89 | 15.33 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 33 | 33 | 32 | 31 | 24 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Becton, Dickinson & Co. | 44 | 46 | 47 | 37 | 41 | |
| Boston Scientific Corp. | 64 | 45 | 75 | 67 | 35 | |
| Danaher Corp. | 70 | 71 | 68 | 72 | 76 | |
| Edwards Lifesciences Corp. | 59 | 52 | 49 | 44 | 38 | |
| Medtronic PLC | 78 | 66 | 68 | 68 | 93 | |
| Stryker Corp. | 47 | 51 | 42 | 42 | 45 | |
| Thermo Fisher Scientific Inc. | 49 | 44 | 45 | 34 | 33 | |
| UnitedHealth Group Inc. | 43 | 42 | 42 | 42 | 44 | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 46 | 45 | 45 | 44 | 47 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 63 | 61 | 63 | 61 | 64 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.08 = 33
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
Intuitive Surgical Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 159 | 133 | 94 | 82 | 76 | |
| Average receivable collection period | 53 | 67 | 60 | 58 | 60 | |
| Average payables payment period | 33 | 33 | 32 | 31 | 24 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 179 | 167 | 122 | 109 | 112 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Becton, Dickinson & Co. | 111 | 110 | 114 | 107 | 144 | |
| Boston Scientific Corp. | 183 | 166 | 139 | 141 | 198 | |
| Danaher Corp. | 70 | 72 | 85 | 80 | 72 | |
| Edwards Lifesciences Corp. | 197 | 229 | 227 | 183 | 209 | |
| Medtronic PLC | 146 | 151 | 132 | 141 | 199 | |
| Stryker Corp. | 255 | 243 | 233 | 214 | 195 | |
| Thermo Fisher Scientific Inc. | 100 | 99 | 118 | 109 | 101 | |
| Cash Conversion Cycle, Sector | ||||||
| Health Care Equipment & Services | 15 | 15 | 15 | 14 | 17 | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 55 | 52 | 54 | 53 | 61 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-04), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-02).
1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 159 + 53 – 33 = 179
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.’s cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019. |