Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Turnover Ratios
Inventory turnover 2.30 2.74 3.88 4.47 4.80
Receivables turnover 6.94 5.46 6.11 6.29 6.05
Payables turnover 11.08 11.12 11.33 11.89 15.33
Working capital turnover 1.23 1.06 1.49 1.02 1.40
Average No. Days
Average inventory processing period 159 133 94 82 76
Add: Average receivable collection period 53 67 60 58 60
Operating cycle 212 200 154 140 136
Less: Average payables payment period 33 33 32 31 24
Cash conversion cycle 179 167 122 109 112

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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 + 5333 = 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.