Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial ratios and cycles over the analyzed periods exhibit notable trends and fluctuations that provide insight into operational efficiency and working capital management.
- Inventory Turnover
-
The inventory turnover ratio initially improved from about 2.49 to a peak near 2.98 by early 2022, indicating enhanced efficiency in inventory management. Subsequently, the ratio declined steadily to approximately 1.83 by mid-2025, suggesting a slower movement of inventory over time.
- Receivables Turnover
-
Receivables turnover exhibited variability but generally remained in the range between 6.3 and 7.9. It peaked around the end of 2021 and then showed minor fluctuations without a definitive upward or downward long-term trend, indicating relatively stable credit and collection practices.
- Payables Turnover
-
Payables turnover showed a marked decrease from a high of approximately 18.35 to lower levels around 10.39 by mid-2025, reflecting an elongation in the payment period to suppliers. This suggests the company has been extending its payables lifespan, possibly to optimize cash flow.
- Working Capital Turnover
-
This ratio increased from roughly 0.77 to a peak of around 1.56 during early 2025, indicating more effective utilization of working capital relative to revenue. However, a slight decline afterwards suggests some reduction in efficiency.
- Average Inventory Processing Period (Days)
-
The average number of days inventory remains before sale initially decreased from 147 to about 122 days by early 2021, reflecting improved inventory management. Thereafter, it rose steadily, reaching near 200 days by mid-2025, in alignment with the declining inventory turnover ratio.
- Average Receivable Collection Period (Days)
-
The collection period fluctuated moderately between 46 and 58 days, with no persistent trend. This stability indicates consistency in credit terms and collection efficiency, despite some short-term variances.
- Operating Cycle (Days)
-
The operating cycle decreased from 201 days to around 172 days by late 2020, reflecting improved efficiency in managing inventory and receivables. However, a steady increase followed, reaching approximately 254 days by early 2025, implying a lengthening operating cycle primarily driven by extended inventory duration.
- Average Payables Payment Period (Days)
-
The payment period extended from 20 to a peak of around 35 days by mid-2025, corroborating the trend of reduced payables turnover. This indicates more stretched payments to suppliers as part of working capital management strategies.
- Cash Conversion Cycle (Days)
-
The cash conversion cycle showed an improvement from 181 to about 146 days through late 2020, reflecting faster cash recovery. However, from 2021 onward, it lengthened again to roughly 230 days by late 2024, suggestive of slower cash flow conversion due to rising inventory days and receivables, partially offset by longer payables periods. In the latest periods, a modest decrease to near 214-218 days is observed, implying some recent efficiency gains.
In summary, the data demonstrates a cycle of early improvements in inventory and cash flow management transitioning into a period of increasing inventory holding times and longer payables. Although receivables collection remains fairly stable, the overall extension of the operating and cash conversion cycles may indicate challenges in operational efficiency or strategic shifts towards holding more inventory and making use of supplier credit to support working capital. Recent periods show slight improvements in the cash conversion cycle, potentially reflecting initiatives to address prior inefficiencies.
Turnover Ratios
Average No. Days
Inventory Turnover
Intuitive Surgical Inc., inventory turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Cost of revenue | 822,100) | 795,700) | 771,300) | 664,200) | 637,200) | 645,200) | 650,900) | 576,500) | 584,000) | 583,200) | 544,100) | 505,300) | 498,800) | 478,000) | 489,900) | 431,900) | 440,300) | 389,500) | 433,300) | 353,400) | 349,200) | 361,300) | |||||||
| Inventory | 1,667,000) | 1,553,600) | 1,487,200) | 1,481,700) | 1,383,900) | 1,299,300) | 1,220,600) | 1,147,500) | 1,005,200) | 946,600) | 893,200) | 837,100) | 724,000) | 653,000) | 587,100) | 584,900) | 569,700) | 576,800) | 601,500) | 662,900) | 645,500) | 620,300) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Inventory turnover1 | 1.83 | 1.85 | 1.83 | 1.75 | 1.81 | 1.89 | 1.96 | 1.99 | 2.21 | 2.25 | 2.27 | 2.36 | 2.62 | 2.82 | 2.98 | 2.90 | 2.84 | 2.64 | 2.49 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 2.73 | 2.82 | 3.02 | 2.69 | 2.67 | 2.65 | 2.74 | 2.71 | 2.62 | 2.77 | 3.10 | 3.37 | 3.24 | 3.36 | 3.59 | 3.47 | 3.27 | 2.99 | 2.99 | — | — | — | |||||||
| Medtronic PLC | 2.11 | 2.10 | 2.15 | 1.95 | 1.92 | 1.91 | 2.03 | 1.92 | 2.00 | 2.09 | 2.20 | 2.26 | 2.38 | 2.47 | 2.43 | 2.24 | 2.20 | 2.10 | 2.23 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Inventory turnover
= (Cost of revenueQ2 2025
+ Cost of revenueQ1 2025
+ Cost of revenueQ4 2024
+ Cost of revenueQ3 2024)
÷ Inventory
= (822,100 + 795,700 + 771,300 + 664,200)
÷ 1,667,000 = 1.83
2 Click competitor name to see calculations.
The cost of revenue demonstrates a generally upward trajectory over the analyzed periods. Starting from approximately $361.3 million in March 2020, it fluctuates moderately in the early quarters but begins to increase more consistently from late 2021 onwards, reaching a peak above $822 million by June 2025. This trend suggests rising expenses related to the production or delivery of goods and services, possibly indicating expansion, increased input costs, or changes in operational scale.
Inventory levels also show a significant increasing pattern throughout the reported periods. Initially recorded at about $620.3 million in March 2020, inventory grows steadily across the quarters, surpassing $1.66 billion by June 2025. This continuous growth in inventory suggests accumulation of stock which may relate to anticipated demand increases, production scale-up, or strategic stockpiling. However, the steady increase also implies potential challenges regarding inventory management and working capital requirements.
The inventory turnover ratio, available from the third quarter of 2020, reveals a declining trend over time. Starting at 2.49 in September 2020, the ratio initially experiences some minor increases, peaking around 2.98 in December 2021, followed by a consistent decline down to approximately 1.83 by mid-2025. A decreasing inventory turnover indicates that inventory is being sold and replaced less frequently, which could reflect slower sales relative to inventory growth or possibly more conservative inventory practices. Such a pattern might warrant attention to inventory efficiency and demand forecasting.
- Cost of Revenue
- Exhibits a steady increase from $361.3 million (Q1 2020) to over $822 million (Q2 2025), reflecting rising operational costs.
- Inventory
- Shows consistent growth from $620.3 million (Q1 2020) to $1.66 billion (Q2 2025), indicating stock accumulation and higher working capital usage.
- Inventory Turnover Ratio
- Trended downwards from approximately 2.49 (Q3 2020) to 1.83 (Q2 2025), pointing to slower inventory movement and potential efficiency concerns.
Receivables Turnover
Intuitive Surgical Inc., receivables turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Revenue | 2,440,000) | 2,253,400) | 2,413,500) | 2,038,100) | 2,009,900) | 1,890,600) | 1,928,300) | 1,743,700) | 1,755,900) | 1,696,200) | 1,655,000) | 1,557,400) | 1,522,100) | 1,487,700) | 1,550,700) | 1,403,300) | 1,464,000) | 1,292,100) | 1,329,100) | 1,077,700) | 852,100) | 1,099,500) | |||||||
| Accounts receivable, net | 1,269,200) | 1,221,500) | 1,225,400) | 1,153,000) | 1,109,100) | 1,127,900) | 1,130,200) | 962,700) | 904,200) | 925,300) | 942,100) | 849,600) | 838,500) | 906,100) | 782,700) | 695,000) | 699,900) | 654,300) | 645,500) | 588,600) | 508,800) | 527,600) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Receivables turnover1 | 7.21 | 7.13 | 6.82 | 6.82 | 6.83 | 6.49 | 6.30 | 7.12 | 7.37 | 6.95 | 6.60 | 7.20 | 7.11 | 6.52 | 7.30 | 7.90 | 7.38 | 6.96 | 6.75 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 5.41 | 5.78 | 6.06 | 5.85 | 5.94 | 6.11 | 6.11 | 6.15 | 6.52 | 6.89 | 7.02 | 7.03 | 6.33 | 6.20 | 6.64 | 6.61 | 6.58 | 6.13 | 5.40 | — | — | — | |||||||
| Elevance Health Inc. | 14.83 | 14.42 | 18.00 | 19.84 | 17.60 | 15.98 | 18.08 | 17.93 | 18.82 | 16.53 | 18.81 | 19.51 | 18.80 | 16.67 | 20.66 | 18.93 | 18.81 | 17.39 | 19.72 | — | — | — | |||||||
| Medtronic PLC | 5.27 | 5.42 | 5.28 | 5.42 | 5.39 | 5.44 | 5.21 | 5.23 | 5.48 | 5.85 | 5.71 | 5.84 | 5.79 | 5.82 | 5.51 | 5.35 | 5.21 | 5.73 | 6.22 | — | — | — | |||||||
| UnitedHealth Group Inc. | 17.29 | 15.03 | 17.66 | 19.43 | 16.49 | 13.80 | 17.27 | 17.23 | 19.23 | 14.88 | 18.22 | 18.37 | 16.27 | 15.65 | 20.07 | 19.60 | 18.53 | 16.35 | 19.86 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Receivables turnover
= (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
÷ Accounts receivable, net
= (2,440,000 + 2,253,400 + 2,413,500 + 2,038,100)
÷ 1,269,200 = 7.21
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibits a generally upward trajectory from March 2020 through June 2025. While notable fluctuations occur quarterly, the overall growth pattern is strong. The revenue decreased notably in the second quarter of 2020 to approximately 852 million USD from over 1 billion USD at the start of the period, likely reflecting external challenges during that timeframe. From mid-2020 onwards, revenue steadily increased, reaching over 2 billion USD by the end of 2024 and surpassing 2.4 billion USD in the mid-2025 period. This indicates a recovery and consistent growth phase following the initial downturn.
- Accounts Receivable, Net Trends
- Accounts receivable show a rising trend throughout the observed periods, moving from approximately 528 million USD in early 2020 to over 1.26 billion USD by mid-2025. This increase correlates with the expanding revenue base, reflecting higher sales volumes and possibly extended credit terms. There are some fluctuations within quarters, including a peak around December 2023 and a slight dip in mid-2024, but the overall direction is upward. This growth in receivables should be monitored closely to ensure effective cash collection.
- Receivables Turnover Ratio Trends
- Receivables turnover ratio data is only available starting in the third quarter of 2020. The ratio starts at 6.75 and initially shows an increasing trend up to the end of 2021, peaking at 7.9. This suggests improved efficiency in collecting accounts receivable during that period. However, from early 2022 onwards, the ratio fluctuates between approximately 6.3 and 7.37 without a clear upward or downward trend. These variations might reflect changes in credit policy, customer payment behavior, or seasonality effects. Overall, the ratio remains relatively stable, indicating consistent management of receivables in relation to sales.
- Integrated Analysis
- The simultaneous increase in revenue and accounts receivable reflects expanding business volume and potentially higher credit sales. Despite this, the receivables turnover ratio remains fairly steady after an initial improvement, implying that the company has maintained its ability to collect receivables efficiently even as sales grow. Continuous monitoring of this ratio is advisable to prevent any deterioration in collection performance that could impact liquidity.
Payables Turnover
Intuitive Surgical Inc., payables turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Cost of revenue | 822,100) | 795,700) | 771,300) | 664,200) | 637,200) | 645,200) | 650,900) | 576,500) | 584,000) | 583,200) | 544,100) | 505,300) | 498,800) | 478,000) | 489,900) | 431,900) | 440,300) | 389,500) | 433,300) | 353,400) | 349,200) | 361,300) | |||||||
| Accounts payable | 266,800) | 276,200) | 193,400) | 218,700) | 194,400) | 194,400) | 188,700) | 196,200) | 199,700) | 164,100) | 147,000) | 164,200) | 149,700) | 128,100) | 121,200) | 120,000) | 117,900) | 103,100) | 81,600) | 116,000) | 108,900) | 133,400) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Payables turnover1 | 11.44 | 10.39 | 14.05 | 11.88 | 12.91 | 12.64 | 12.69 | 11.66 | 11.10 | 12.99 | 13.78 | 12.01 | 12.68 | 14.36 | 14.45 | 14.13 | 13.71 | 14.80 | 18.35 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 4.40 | 4.44 | 4.46 | 4.54 | 4.42 | 4.33 | 4.19 | 4.55 | 4.28 | 4.44 | 4.15 | 4.67 | 4.25 | 4.02 | 4.21 | 4.55 | 4.43 | 3.97 | 3.80 | — | — | — | |||||||
| Elevance Health Inc. | 8.07 | 7.87 | 8.10 | 8.17 | 8.09 | 7.54 | 7.72 | 7.61 | 7.54 | 7.57 | 7.47 | 7.48 | 7.35 | 7.28 | 7.59 | 7.31 | 7.30 | 7.31 | 7.75 | — | — | — | |||||||
| Medtronic PLC | 4.85 | 4.95 | 4.65 | 5.60 | 5.09 | 4.84 | 4.03 | 4.68 | 4.60 | 4.62 | 4.46 | 5.14 | 5.41 | 5.67 | 4.98 | 5.56 | 5.19 | 5.56 | 4.72 | — | — | — | |||||||
| UnitedHealth Group Inc. | 7.42 | 7.32 | 7.72 | 7.64 | 7.77 | 7.28 | 7.47 | 7.11 | 7.08 | 6.86 | 7.26 | 7.07 | 6.90 | 6.78 | 7.63 | 6.98 | 6.97 | 6.58 | 7.29 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Payables turnover
= (Cost of revenueQ2 2025
+ Cost of revenueQ1 2025
+ Cost of revenueQ4 2024
+ Cost of revenueQ3 2024)
÷ Accounts payable
= (822,100 + 795,700 + 771,300 + 664,200)
÷ 266,800 = 11.44
2 Click competitor name to see calculations.
The cost of revenue exhibited a fluctuating but generally upward trend over the analyzed periods. Starting at approximately $361.3 million in March 2020, it experienced a gradual rise with occasional quarterly increases, reaching a peak of about $822.1 million by June 2025. Notably, there were some more pronounced jumps in the cost of revenue during the latter part of the timeline, particularly from late 2022 onward, suggesting increasing expenses associated with generating revenue.
Accounts payable followed a more variable pattern but also tended to increase over time. From $133.4 million in March 2020, the value declined initially reaching a low point around $81.6 million in December 2020, before steadily climbing in subsequent quarters. The figure topped at approximately $276.2 million in June 2025, indicating growing outstanding obligations to suppliers or creditors. Some fluctuations in this account may reflect changes in payment cycles or procurement activity.
Payables turnover ratio showed a general downward trend, implying a slower rate of paying off creditors relative to cost of revenue. Early in the timeline, turnover values near 18.35 suggested rapid payment of accounts payable, but the ratio declined steadily to values around 10.39 by mid-2025. This decline denotes longer payables duration or more extended credit terms, potentially as part of working capital management strategies. There were minor reversals or stabilizations in the ratio during some quarters, but the overall movement points to a lengthening of the payables payment cycle.
In summary, increasing cost of revenue combined with growing accounts payable balances and a decreasing payables turnover ratio suggest rising operational scale accompanied by extended supplier payment terms. This dynamic may reflect a strategic adjustment in cash management or supply chain financing practices within the company over the evaluated period.
- Cost of Revenue
- Generally upward trend from $361.3 million to $822.1 million, with some sharper increases in the later periods.
- Accounts Payable
- Variable but increasing pattern, rising from $133.4 million to $276.2 million, reflecting higher outstanding payables.
- Payables Turnover Ratio
- Steady decline from approximately 18.35 to 10.39, indicating slower payments to suppliers and longer payment cycles.
- Overall Insight
- Rising costs and payables coupled with lengthening payment periods suggest operational growth alongside extended supplier credit and careful cash flow management.
Working Capital Turnover
Intuitive Surgical Inc., working capital turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Current assets | 8,745,900) | 7,657,800) | 7,111,000) | 7,215,600) | 7,654,300) | 7,632,700) | 7,888,000) | 8,902,900) | 8,031,800) | 6,877,000) | 6,253,000) | 6,293,100) | 6,292,500) | 5,803,200) | 5,844,900) | 5,728,000) | 6,016,600) | 6,066,400) | 6,625,900) | 6,300,300) | 5,899,000) | 4,691,500) | |||||||
| Less: Current liabilities | 1,692,600) | 1,538,100) | 1,745,300) | 1,676,800) | 1,487,500) | 1,375,100) | 1,658,700) | 1,676,400) | 1,538,400) | 1,307,400) | 1,422,100) | 1,233,400) | 1,175,000) | 1,112,200) | 1,149,800) | 1,027,300) | 1,004,600) | 904,600) | 965,200) | 894,700) | 924,800) | 945,900) | |||||||
| Working capital | 7,053,300) | 6,119,700) | 5,365,700) | 5,538,800) | 6,166,800) | 6,257,600) | 6,229,300) | 7,226,500) | 6,493,400) | 5,569,600) | 4,830,900) | 5,059,700) | 5,117,500) | 4,691,000) | 4,695,100) | 4,700,700) | 5,012,000) | 5,161,800) | 5,660,700) | 5,405,600) | 4,974,200) | 3,745,600) | |||||||
| Revenue | 2,440,000) | 2,253,400) | 2,413,500) | 2,038,100) | 2,009,900) | 1,890,600) | 1,928,300) | 1,743,700) | 1,755,900) | 1,696,200) | 1,655,000) | 1,557,400) | 1,522,100) | 1,487,700) | 1,550,700) | 1,403,300) | 1,464,000) | 1,292,100) | 1,329,100) | 1,077,700) | 852,100) | 1,099,500) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Working capital turnover1 | 1.30 | 1.42 | 1.56 | 1.42 | 1.23 | 1.17 | 1.14 | 0.95 | 1.03 | 1.15 | 1.29 | 1.21 | 1.17 | 1.26 | 1.22 | 1.17 | 1.03 | 0.88 | 0.77 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 3.91 | 4.17 | 4.42 | 4.63 | 4.35 | 4.83 | 4.54 | 4.15 | 4.39 | 4.21 | 4.48 | 3.92 | 3.63 | 4.13 | 3.87 | 3.98 | 4.02 | 3.99 | 4.06 | — | — | — | |||||||
| Elevance Health Inc. | 7.96 | 8.11 | 7.85 | 6.87 | 6.92 | 8.59 | 7.83 | 7.92 | 7.69 | 7.60 | 8.37 | 9.11 | 8.85 | 8.65 | 7.23 | 6.79 | 6.67 | 5.38 | 6.39 | — | — | — | |||||||
| Medtronic PLC | 3.22 | 2.79 | 2.90 | 2.54 | 2.57 | 2.46 | 2.47 | 2.81 | 2.82 | 3.84 | 2.97 | 2.21 | 2.13 | 2.15 | 2.15 | 2.02 | 2.00 | 2.44 | 2.48 | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Working capital turnover
= (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
÷ Working capital
= (2,440,000 + 2,253,400 + 2,413,500 + 2,038,100)
÷ 7,053,300 = 1.30
2 Click competitor name to see calculations.
- Working Capital
- The working capital shows a general increasing trend over the periods observed. Beginning at 3,745,600 thousand US dollars in March 2020, it rises to notable peaks such as 7,223,500 thousand US dollars in September 2023. However, fluctuations are present; after reaching this peak, there is a decline to 5,368,700 thousand US dollars in June 2025 before rising again to 7,053,300 thousand US dollars in the latest period. This pattern suggests dynamic management of short-term assets and liabilities, with some periodic drawdowns followed by accumulation phases.
- Revenue
- The revenue figures exhibit an overall upward trajectory with some fluctuations across quarters. Starting at 1,099,500 thousand US dollars in March 2020, revenue dips to 852,100 thousand US dollars in June 2020, likely reflecting a temporary downturn. Afterwards, revenue recovers steadily, reaching 2,440,000 thousand US dollars by June 2025, more than doubling the initial figure. This growth appears sustained, with occasional quarter-to-quarter variability, indicating the company’s capacity for expansion despite short-term market or operational challenges.
- Working Capital Turnover Ratio
- The working capital turnover ratio is available starting from September 2020 and reveals significant improvement over time. Initially at 0.77, the ratio increases steadily to a high of 1.56 by June 2025, indicating enhanced efficiency in using working capital to generate revenue. This upward trend reflects better operational performance and financial effectiveness in converting working capital into sales. Minor dips are seen in few quarters but the general movement is positive, implying improved asset utilization over the observed period.
Average Inventory Processing Period
Intuitive Surgical Inc., average inventory processing period calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Inventory turnover | 1.83 | 1.85 | 1.83 | 1.75 | 1.81 | 1.89 | 1.96 | 1.99 | 2.21 | 2.25 | 2.27 | 2.36 | 2.62 | 2.82 | 2.98 | 2.90 | 2.84 | 2.64 | 2.49 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average inventory processing period1 | 199 | 198 | 200 | 208 | 201 | 193 | 186 | 183 | 166 | 162 | 161 | 155 | 139 | 130 | 122 | 126 | 129 | 138 | 147 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 134 | 130 | 121 | 136 | 136 | 138 | 133 | 135 | 139 | 132 | 118 | 108 | 113 | 109 | 102 | 105 | 111 | 122 | 122 | — | — | — | |||||||
| Medtronic PLC | 173 | 174 | 170 | 187 | 190 | 191 | 180 | 190 | 183 | 174 | 166 | 161 | 153 | 148 | 150 | 163 | 166 | 174 | 164 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.83 = 199
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio shows an initial increase from 2.49 in the first recorded quarter to a peak of 2.98 by the first quarter of 2022. Following this peak, there is a consistent downward trend, declining to 1.83 by the second quarter of 2025. This indicates a gradual decrease in the frequency at which inventory is sold and replaced over time.
- Average Inventory Processing Period
- The average inventory processing period, expressed in number of days, exhibits a generally opposite trend to the inventory turnover ratio. Starting at 147 days, it initially decreases to 122 days by the first quarter of 2022, suggesting improved efficiency in inventory management during this period. However, after this point, the inventory processing period extends significantly, increasing to 199 days by the second quarter of 2025. This reflects a lengthening of the time inventory remains on hand before being processed or sold.
- Overall Trend Analysis
- The analysis reveals an inverse relationship between the inventory turnover ratio and the average inventory processing period, which is typical as one measures inventory movement speed while the other measures duration. The early improvement in inventory management, suggested by increasing turnover and decreasing processing period, is followed by a phase of declining turnover and increasing processing days, indicating potential challenges in inventory efficiency or changes in operational dynamics from 2022 onward. The persistent decline in turnover ratio and rise in processing period after the peak may warrant attention to the factors contributing to slower inventory movement.
Average Receivable Collection Period
Intuitive Surgical Inc., average receivable collection period calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Receivables turnover | 7.21 | 7.13 | 6.82 | 6.82 | 6.83 | 6.49 | 6.30 | 7.12 | 7.37 | 6.95 | 6.60 | 7.20 | 7.11 | 6.52 | 7.30 | 7.90 | 7.38 | 6.96 | 6.75 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average receivable collection period1 | 51 | 51 | 54 | 53 | 53 | 56 | 58 | 51 | 50 | 53 | 55 | 51 | 51 | 56 | 50 | 46 | 49 | 52 | 54 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 67 | 63 | 60 | 62 | 61 | 60 | 60 | 59 | 56 | 53 | 52 | 52 | 58 | 59 | 55 | 55 | 55 | 60 | 68 | — | — | — | |||||||
| Elevance Health Inc. | 25 | 25 | 20 | 18 | 21 | 23 | 20 | 20 | 19 | 22 | 19 | 19 | 19 | 22 | 18 | 19 | 19 | 21 | 19 | — | — | — | |||||||
| Medtronic PLC | 69 | 67 | 69 | 67 | 68 | 67 | 70 | 70 | 67 | 62 | 64 | 63 | 63 | 63 | 66 | 68 | 70 | 64 | 59 | — | — | — | |||||||
| UnitedHealth Group Inc. | 21 | 24 | 21 | 19 | 22 | 26 | 21 | 21 | 19 | 25 | 20 | 20 | 22 | 23 | 18 | 19 | 20 | 22 | 18 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.21 = 51
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio demonstrates a fluctuating but generally stable pattern over the observed periods. Starting at 6.75 in March 2021, it increased gradually to peak at 7.9 by December 2021. Following this peak, the ratio experienced a decline to 6.3 in March 2024, indicating slower collection efficiency during that interval. However, from that point onward, the ratio recovered slightly, stabilizing around values between 6.8 and 7.2 by mid-2025.
- Average Receivable Collection Period
- The average receivable collection period exhibits an inverse trend relative to the receivables turnover ratio, as expected. Beginning at 54 days in March 2021, it decreased to a low of 46 days by December 2021, reflecting improved efficiency in collecting receivables. After this improvement, the collection period increased to reach a peak of 58 days in March 2024, signaling reduced efficiency or slower collections. The period subsequently decreased and stabilized around 51 to 54 days toward mid-2025.
- Overall Trend and Insights
- The data indicates that receivables management experienced a phase of strengthening through 2021, with faster collections and higher turnover ratios. However, starting in early 2022 through early 2024, there is a noticeable decline in efficiency, as evidenced by the decrease in turnover ratio and increase in collection period. The recovery and stabilization observed from 2024 onward suggest corrective or adaptive measures may have been implemented, returning receivables management performance closer to earlier levels. Despite some volatility, the company maintained a fairly consistent receivables cycle throughout the period analyzed.
Operating Cycle
Intuitive Surgical Inc., operating cycle calculation (quarterly data)
No. days
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Average inventory processing period | 199 | 198 | 200 | 208 | 201 | 193 | 186 | 183 | 166 | 162 | 161 | 155 | 139 | 130 | 122 | 126 | 129 | 138 | 147 | — | — | — | |||||||
| Average receivable collection period | 51 | 51 | 54 | 53 | 53 | 56 | 58 | 51 | 50 | 53 | 55 | 51 | 51 | 56 | 50 | 46 | 49 | 52 | 54 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Operating cycle1 | 250 | 249 | 254 | 261 | 254 | 249 | 244 | 234 | 216 | 215 | 216 | 206 | 190 | 186 | 172 | 172 | 178 | 190 | 201 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 201 | 193 | 181 | 198 | 197 | 198 | 193 | 194 | 195 | 185 | 170 | 160 | 171 | 168 | 157 | 160 | 166 | 182 | 190 | — | — | — | |||||||
| Medtronic PLC | 242 | 241 | 239 | 254 | 258 | 258 | 250 | 260 | 250 | 236 | 230 | 224 | 216 | 211 | 216 | 231 | 236 | 238 | 223 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 199 + 51 = 250
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows an overall upward trend from March 2021 to June 2025. Starting at 147 days in March 2021, the period decreases slightly to 122 days by March 2022. However, from that point, it progressively increases, reaching 199 days by June 2025. This trend indicates increasing inventory holding times, suggesting either slower inventory turnover or greater stock accumulation over the latter periods.
- Average Receivable Collection Period
- The average receivable collection period exhibits moderate fluctuations over the reported periods. Initially, it decreases from 54 days in March 2021 to 46 days by December 2021, showing an improvement in receivables management. Afterwards, it oscillates between 50 and 58 days without establishing a clear trend, ending close to 51 days in June 2025. This pattern suggests a relatively stable but somewhat inconsistent efficiency in collecting receivables.
- Operating Cycle
- The operating cycle mirrors the general pattern observed in inventory and receivables periods. After an improvement from 201 days in March 2021 to 172 days by December 2021, the operating cycle begins a steady ascent, reaching 250 days by June 2025. This increase implies a lengthening of the total time taken from inventory acquisition to cash collection, potentially reflecting slower operational processes or extended credit and inventory durations.
Average Payables Payment Period
Intuitive Surgical Inc., average payables payment period calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Payables turnover | 11.44 | 10.39 | 14.05 | 11.88 | 12.91 | 12.64 | 12.69 | 11.66 | 11.10 | 12.99 | 13.78 | 12.01 | 12.68 | 14.36 | 14.45 | 14.13 | 13.71 | 14.80 | 18.35 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average payables payment period1 | 32 | 35 | 26 | 31 | 28 | 29 | 29 | 31 | 33 | 28 | 26 | 30 | 29 | 25 | 25 | 26 | 27 | 25 | 20 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 83 | 82 | 82 | 80 | 83 | 84 | 87 | 80 | 85 | 82 | 88 | 78 | 86 | 91 | 87 | 80 | 82 | 92 | 96 | — | — | — | |||||||
| Elevance Health Inc. | 45 | 46 | 45 | 45 | 45 | 48 | 47 | 48 | 48 | 48 | 49 | 49 | 50 | 50 | 48 | 50 | 50 | 50 | 47 | — | — | — | |||||||
| Medtronic PLC | 75 | 74 | 78 | 65 | 72 | 75 | 91 | 78 | 79 | 79 | 82 | 71 | 67 | 64 | 73 | 66 | 70 | 66 | 77 | — | — | — | |||||||
| UnitedHealth Group Inc. | 49 | 50 | 47 | 48 | 47 | 50 | 49 | 51 | 52 | 53 | 50 | 52 | 53 | 54 | 48 | 52 | 52 | 56 | 50 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.44 = 32
2 Click competitor name to see calculations.
- Payables Turnover
-
The payables turnover ratio exhibits a decreasing trend from the initial recorded value of 18.35 in March 2021, declining to a low of 10.39 in June 2025. This downward movement indicates that the company is turning over its payables less frequently over time, which could suggest a slower payment cycle or extended supplier payment terms.
The ratio fluctuates moderately throughout the periods, with some intermittent increases, such as from 11.66 in June 2023 to 12.69 in September 2023, and from 12.64 in December 2023 to 12.91 in March 2024. However, the overall trajectory remains downward, signaling a gradual lengthening of the payables cycle or changes in working capital management.
- Average Payables Payment Period
-
The average payables payment period, expressed in number of days, generally increases from 20 days in March 2021 to a peak of 35 days in June 2025. This rising trend is consistent with the decline in the payables turnover ratio, confirming that the company is taking longer to pay its suppliers over the observed timeframe.
Within this overall upward trajectory, there are fluctuations: for instance, the payment period decreases from 33 days in September 2023 to 31 days in December 2023, and again from 31 days in March 2024 to 26 days in June 2024 before climbing back up. These variations suggest some short-term adjustments in payment timing but do not alter the longer-term extension of the payment period.
- Correlation and Implications
-
There is a clear negative correlation between the payables turnover ratio and the average payables payment period, as expected since a lower turnover corresponds to a longer payment period. The gradual extension in the payment period may reflect strategic decisions to improve cash flow or changes in supplier contract terms.
While extended payment periods can enhance liquidity temporarily, they may also carry risks such as supplier dissatisfaction or loss of early payment discounts. The company’s management should monitor this trend to balance working capital efficiency against potential impacts on supplier relationships.
Cash Conversion Cycle
Intuitive Surgical Inc., cash conversion cycle calculation (quarterly data)
No. days
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Average inventory processing period | 199 | 198 | 200 | 208 | 201 | 193 | 186 | 183 | 166 | 162 | 161 | 155 | 139 | 130 | 122 | 126 | 129 | 138 | 147 | — | — | — | |||||||
| Average receivable collection period | 51 | 51 | 54 | 53 | 53 | 56 | 58 | 51 | 50 | 53 | 55 | 51 | 51 | 56 | 50 | 46 | 49 | 52 | 54 | — | — | — | |||||||
| Average payables payment period | 32 | 35 | 26 | 31 | 28 | 29 | 29 | 31 | 33 | 28 | 26 | 30 | 29 | 25 | 25 | 26 | 27 | 25 | 20 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Cash conversion cycle1 | 218 | 214 | 228 | 230 | 226 | 220 | 215 | 203 | 183 | 187 | 190 | 176 | 161 | 161 | 147 | 146 | 151 | 165 | 181 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||
| Abbott Laboratories | 118 | 111 | 99 | 118 | 114 | 114 | 106 | 114 | 110 | 103 | 82 | 82 | 85 | 77 | 70 | 80 | 84 | 90 | 94 | — | — | — | |||||||
| Medtronic PLC | 167 | 167 | 161 | 189 | 186 | 183 | 159 | 182 | 171 | 157 | 148 | 153 | 149 | 147 | 143 | 165 | 166 | 172 | 146 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 199 + 51 – 32 = 218
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- From the first reported period in March 2021, the average inventory processing period displayed a generally increasing trend. Initially at 147 days, it declined modestly over the following quarters to a low of 122 days by March 2022. Subsequently, a steady increase is observed through to June 2025, reaching 199 days. This pattern indicates that inventory is being held for longer durations recently, which could imply slower inventory turnover or changes in inventory management strategy.
- Average Receivable Collection Period
- The average receivable collection period started at 54 days in March 2021, then decreased steadily to 46 days by December 2020, before fluctuating in a narrow range between 49 and 56 days through mid-2024. The period shows relative stability, hovering around the low 50s days, with some temporary increases, for example rising to 58 days in June 2023. Overall, receivables are collected within a consistent timeframe, suggesting stable credit and collection policies.
- Average Payables Payment Period
- There is a noticeable upward trend in the payables payment period during the period analyzed. Starting from 20 days early in the timeline, it increased to peaks around 30-33 days at various points, such as December 2022 and September 2023. Some volatility is visible with periods of decline followed by rises, but the general movement is towards longer payment periods, indicating that the company may be taking longer to settle its payables over time.
- Cash Conversion Cycle
- The cash conversion cycle (CCC) shows a complex pattern, with an initial decline from 181 days in March 2021 to 146 days by December 2020, then an increasing trajectory from early 2022, reaching a peak of 230 days in December 2024. The periods following the peak show a slight improvement but remain elevated above initial levels. The lengthening CCC suggests that the company is tying up more cash in working capital, potentially due to extended inventory holding and receivables collection periods, partially offset by payables payment behavior.