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)
Edwards Lifesciences Corp., short-term (operating) activity ratios
Based on: 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), 10-K (reporting date: 2016-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Edwards Lifesciences Corp. inventory turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Edwards Lifesciences Corp. receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Edwards Lifesciences Corp. payables turnover ratio decreased from 2018 to 2019 and from 2019 to 2020. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Edwards Lifesciences Corp. working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| 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. | Edwards Lifesciences Corp. number of days of inventory outstanding improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Edwards Lifesciences Corp. number of days of receivables outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Edwards Lifesciences Corp. operating cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| 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. | Edwards Lifesciences Corp. number of days of payables outstanding increased from 2018 to 2019 and from 2019 to 2020. |
| 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. | Edwards Lifesciences Corp. cash conversion cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Inventory Turnover
Edwards Lifesciences Corp., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of sales | 1,080,600 | 1,114,400 | 939,400 | 875,300 | 797,400 | |
| Inventories | 802,300 | 640,900 | 607,000 | 554,900 | 396,600 | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 1.35 | 1.74 | 1.55 | 1.58 | 2.01 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Abbott Laboratories | 2.99 | 3.07 | 3.35 | 3.43 | 3.71 | |
| Becton, Dickinson & Co. | 3.48 | 3.49 | 3.56 | 3.38 | 3.78 | |
| Bristol-Myers Squibb Co. | 5.68 | 1.88 | 5.48 | 5.20 | 3.99 | |
| CVS Health Corp. | 11.88 | 12.06 | 9.91 | 10.21 | 10.07 | |
| Danaher Corp. | 4.28 | 4.87 | 4.60 | 4.42 | 4.42 | |
| HCA Healthcare Inc. | 4.13 | 4.59 | 4.46 | 4.65 | 4.61 | |
| Intuitive Surgical Inc. | 2.49 | 2.30 | 2.74 | 3.88 | 4.47 | |
| Medtronic PLC | 2.23 | 2.44 | 2.53 | 2.78 | 2.63 | |
| Stryker Corp. | 1.52 | 1.58 | 1.58 | 1.73 | 1.89 | |
| Inventory Turnover, Sector | ||||||
| Health Care Equipment & Services | 12.90 | 12.68 | 12.56 | 12.98 | 12.97 | |
| Inventory Turnover, Industry | ||||||
| Health Care | 7.47 | 7.59 | 7.41 | 7.31 | 7.36 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 1,080,600 ÷ 802,300 = 1.35
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. | Edwards Lifesciences Corp. inventory turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Receivables Turnover
Edwards Lifesciences Corp., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 4,386,300 | 4,348,000 | 3,722,800 | 3,435,300 | 2,963,700 | |
| Accounts receivable, net of allowances | 514,600 | 543,600 | 456,900 | 421,600 | 365,500 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 8.52 | 8.00 | 8.15 | 8.15 | 8.11 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 5.40 | 5.88 | 5.90 | 5.22 | 6.42 | |
| Anthem Inc. | 19.72 | 18.20 | 19.13 | 23.20 | 13.46 | |
| Becton, Dickinson & Co. | 7.14 | 7.37 | 6.89 | 6.93 | 7.72 | |
| Bristol-Myers Squibb Co. | 5.72 | 3.89 | 4.66 | 4.43 | 4.69 | |
| CVS Health Corp. | 12.32 | 13.04 | 11.00 | 14.02 | 14.59 | |
| Danaher Corp. | 5.51 | 5.61 | 5.70 | 5.20 | 5.30 | |
| HCA Healthcare Inc. | 7.31 | 6.96 | 6.88 | 6.71 | 7.12 | |
| Intuitive Surgical Inc. | 6.75 | 6.94 | 5.46 | 6.11 | 6.29 | |
| Medtronic PLC | 6.22 | 4.91 | 5.00 | 5.31 | 5.18 | |
| Stryker Corp. | 5.31 | 5.14 | 5.83 | 5.66 | 5.76 | |
| UnitedHealth Group Inc. | 15.65 | 16.05 | 15.64 | 16.56 | 17.68 | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 10.49 | 10.28 | 9.84 | 10.56 | 10.66 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 8.05 | 8.31 | 8.04 | 8.26 | 8.38 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net of allowances
= 4,386,300 ÷ 514,600 = 8.52
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. | Edwards Lifesciences Corp. receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Payables Turnover
Edwards Lifesciences Corp., payables turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of sales | 1,080,600 | 1,114,400 | 939,400 | 875,300 | 797,400 | |
| Accounts payable | 196,500 | 180,400 | 134,000 | 116,600 | 97,100 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.50 | 6.18 | 7.01 | 7.51 | 8.21 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.80 | 4.07 | 4.27 | 5.14 | 7.66 | |
| Anthem Inc. | 7.75 | 9.25 | 9.65 | 9.04 | 8.47 | |
| Becton, Dickinson & Co. | 7.04 | 8.24 | 7.89 | 7.72 | 9.76 | |
| Bristol-Myers Squibb Co. | 4.34 | 3.30 | 3.46 | 2.70 | 2.97 | |
| CVS Health Corp. | 19.72 | 20.13 | 18.27 | 17.63 | 18.71 | |
| Danaher Corp. | 4.79 | 5.23 | 5.13 | 5.39 | 5.08 | |
| HCA Healthcare Inc. | 2.37 | 2.92 | 3.00 | 2.81 | 2.99 | |
| Intuitive Surgical Inc. | 18.35 | 11.08 | 11.12 | 11.33 | 11.89 | |
| Medtronic PLC | 4.72 | 4.69 | 5.56 | 5.37 | 5.35 | |
| Stryker Corp. | 6.54 | 7.69 | 7.22 | 8.77 | 8.76 | |
| UnitedHealth Group Inc. | 7.29 | 7.21 | 7.31 | 7.28 | 7.14 | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 8.83 | 9.30 | 8.98 | 8.86 | 9.13 | |
| Payables Turnover, Industry | ||||||
| Health Care | 7.23 | 7.60 | 7.41 | 7.25 | 7.41 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 1,080,600 ÷ 196,500 = 5.50
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. | Edwards Lifesciences Corp. payables turnover ratio decreased from 2018 to 2019 and from 2019 to 2020. |
Working Capital Turnover
Edwards Lifesciences Corp., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 3,091,000 | 2,984,000 | 2,286,900 | 2,532,100 | 2,240,000 | |
| Less: Current liabilities | 893,900 | 902,400 | 876,600 | 1,402,900 | 532,500 | |
| Working capital | 2,197,100 | 2,081,600 | 1,410,300 | 1,129,200 | 1,707,500 | |
| Net sales | 4,386,300 | 4,348,000 | 3,722,800 | 3,435,300 | 2,963,700 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 2.00 | 2.09 | 2.64 | 3.04 | 1.74 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.06 | 6.64 | 5.44 | 2.44 | 1.04 | |
| Anthem Inc. | 6.39 | 6.11 | 6.91 | 6.48 | 6.06 | |
| Becton, Dickinson & Co. | 5.46 | 17.14 | 81.96 | 0.79 | 6.35 | |
| Bristol-Myers Squibb Co. | 3.72 | 2.28 | 3.32 | 3.64 | 3.64 | |
| CVS Health Corp. | — | — | 157.15 | 318.01 | 37.05 | |
| Danaher Corp. | 3.48 | 0.87 | 8.83 | 8.91 | — | |
| HCA Healthcare Inc. | 14.20 | 14.93 | 17.65 | 11.42 | 12.76 | |
| Intuitive Surgical Inc. | 0.77 | 1.23 | 1.06 | 1.49 | 1.02 | |
| Medtronic PLC | 2.48 | 2.26 | 2.32 | 2.79 | 1.75 | |
| Stryker Corp. | 3.08 | 2.14 | 2.76 | 2.76 | 2.40 | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 16.19 | 12.21 | 16.48 | 10.61 | 9.59 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 10.55 | 7.14 | 6.49 | 5.44 | 4.68 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Working capital turnover = Net sales ÷ Working capital
= 4,386,300 ÷ 2,197,100 = 2.00
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. | Edwards Lifesciences Corp. working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Average Inventory Processing Period
Edwards Lifesciences Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 1.35 | 1.74 | 1.55 | 1.58 | 2.01 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 271 | 210 | 236 | 231 | 182 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Abbott Laboratories | 122 | 119 | 109 | 107 | 98 | |
| Becton, Dickinson & Co. | 105 | 105 | 103 | 108 | 97 | |
| Bristol-Myers Squibb Co. | 64 | 194 | 67 | 70 | 92 | |
| CVS Health Corp. | 31 | 30 | 37 | 36 | 36 | |
| Danaher Corp. | 85 | 75 | 79 | 83 | 83 | |
| HCA Healthcare Inc. | 88 | 80 | 82 | 78 | 79 | |
| Intuitive Surgical Inc. | 147 | 159 | 133 | 94 | 82 | |
| Medtronic PLC | 164 | 150 | 144 | 131 | 139 | |
| Stryker Corp. | 241 | 231 | 231 | 211 | 193 | |
| Average Inventory Processing Period, Sector | ||||||
| Health Care Equipment & Services | 28 | 29 | 29 | 28 | 28 | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 49 | 48 | 49 | 50 | 50 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.35 = 271
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. | Edwards Lifesciences Corp. number of days of inventory outstanding improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Average Receivable Collection Period
Edwards Lifesciences Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 8.52 | 8.00 | 8.15 | 8.15 | 8.11 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 43 | 46 | 45 | 45 | 45 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | 68 | 62 | 62 | 70 | 57 | |
| Anthem Inc. | 19 | 20 | 19 | 16 | 27 | |
| Becton, Dickinson & Co. | 51 | 50 | 53 | 53 | 47 | |
| Bristol-Myers Squibb Co. | 64 | 94 | 78 | 82 | 78 | |
| CVS Health Corp. | 30 | 28 | 33 | 26 | 25 | |
| Danaher Corp. | 66 | 65 | 64 | 70 | 69 | |
| HCA Healthcare Inc. | 50 | 52 | 53 | 54 | 51 | |
| Intuitive Surgical Inc. | 54 | 53 | 67 | 60 | 58 | |
| Medtronic PLC | 59 | 74 | 73 | 69 | 70 | |
| Stryker Corp. | 69 | 71 | 63 | 64 | 63 | |
| UnitedHealth Group Inc. | 23 | 23 | 23 | 22 | 21 | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 35 | 36 | 37 | 35 | 34 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 45 | 44 | 45 | 44 | 44 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.52 = 43
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. | Edwards Lifesciences Corp. number of days of receivables outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Operating Cycle
Edwards Lifesciences Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 271 | 210 | 236 | 231 | 182 | |
| Average receivable collection period | 43 | 46 | 45 | 45 | 45 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 314 | 256 | 281 | 276 | 227 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Abbott Laboratories | 190 | 181 | 171 | 177 | 155 | |
| Becton, Dickinson & Co. | 156 | 155 | 156 | 161 | 144 | |
| Bristol-Myers Squibb Co. | 128 | 288 | 145 | 152 | 170 | |
| CVS Health Corp. | 61 | 58 | 70 | 62 | 61 | |
| Danaher Corp. | 151 | 140 | 143 | 153 | 152 | |
| HCA Healthcare Inc. | 138 | 132 | 135 | 132 | 130 | |
| Intuitive Surgical Inc. | 201 | 212 | 200 | 154 | 140 | |
| Medtronic PLC | 223 | 224 | 217 | 200 | 209 | |
| Stryker Corp. | 310 | 302 | 294 | 275 | 256 | |
| Operating Cycle, Sector | ||||||
| Health Care Equipment & Services | 63 | 65 | 66 | 63 | 62 | |
| Operating Cycle, Industry | ||||||
| Health Care | 94 | 92 | 94 | 94 | 94 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 271 + 43 = 314
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. | Edwards Lifesciences Corp. operating cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Average Payables Payment Period
Edwards Lifesciences Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.50 | 6.18 | 7.01 | 7.51 | 8.21 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 66 | 59 | 52 | 49 | 44 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | 96 | 90 | 85 | 71 | 48 | |
| Anthem Inc. | 47 | 39 | 38 | 40 | 43 | |
| Becton, Dickinson & Co. | 52 | 44 | 46 | 47 | 37 | |
| Bristol-Myers Squibb Co. | 84 | 110 | 105 | 135 | 123 | |
| CVS Health Corp. | 19 | 18 | 20 | 21 | 20 | |
| Danaher Corp. | 76 | 70 | 71 | 68 | 72 | |
| HCA Healthcare Inc. | 154 | 125 | 122 | 130 | 122 | |
| Intuitive Surgical Inc. | 20 | 33 | 33 | 32 | 31 | |
| Medtronic PLC | 77 | 78 | 66 | 68 | 68 | |
| Stryker Corp. | 56 | 47 | 51 | 42 | 42 | |
| UnitedHealth Group Inc. | 50 | 51 | 50 | 50 | 51 | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 41 | 39 | 41 | 41 | 40 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 50 | 48 | 49 | 50 | 49 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.50 = 66
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. | Edwards Lifesciences Corp. number of days of payables outstanding increased from 2018 to 2019 and from 2019 to 2020. |
Cash Conversion Cycle
Edwards Lifesciences Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 271 | 210 | 236 | 231 | 182 | |
| Average receivable collection period | 43 | 46 | 45 | 45 | 45 | |
| Average payables payment period | 66 | 59 | 52 | 49 | 44 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 248 | 197 | 229 | 227 | 183 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Abbott Laboratories | 94 | 91 | 86 | 106 | 107 | |
| Becton, Dickinson & Co. | 104 | 111 | 110 | 114 | 107 | |
| Bristol-Myers Squibb Co. | 44 | 178 | 40 | 17 | 47 | |
| CVS Health Corp. | 42 | 40 | 50 | 41 | 41 | |
| Danaher Corp. | 75 | 70 | 72 | 85 | 80 | |
| HCA Healthcare Inc. | -16 | 7 | 13 | 2 | 8 | |
| Intuitive Surgical Inc. | 181 | 179 | 167 | 122 | 109 | |
| Medtronic PLC | 146 | 146 | 151 | 132 | 141 | |
| Stryker Corp. | 254 | 255 | 243 | 233 | 214 | |
| Cash Conversion Cycle, Sector | ||||||
| Health Care Equipment & Services | 22 | 26 | 25 | 22 | 22 | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 44 | 44 | 45 | 44 | 45 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 271 + 43 – 66 = 248
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. | Edwards Lifesciences Corp. cash conversion cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |