Stock Analysis on Net

Edwards Lifesciences Corp. (NYSE:EW)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

Edwards Lifesciences Corp., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Turnover Ratios
Inventory turnover 1.35 1.74 1.55 1.58 2.01
Receivables turnover 8.52 8.00 8.15 8.15 8.11
Payables turnover 5.50 6.18 7.01 7.51 8.21
Working capital turnover 2.00 2.09 2.64 3.04 1.74
Average No. Days
Average inventory processing period 271 210 236 231 182
Add: Average receivable collection period 43 46 45 45 45
Operating cycle 314 256 281 276 227
Less: Average payables payment period 66 59 52 49 44
Cash conversion cycle 248 197 229 227 183

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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 + 4366 = 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.