Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
The analysis of the annual financial data reveals several notable trends in key operational efficiency ratios and related measures over the six-year period.
- Inventory Turnover
- The inventory turnover ratio fluctuated modestly, starting at 2.23 and peaking at 2.43 in 2021, then generally declining and stabilizing around 2.12 by 2025. This suggests a relative slowing in the rate at which inventory is sold or used over time, indicating potential changes in inventory management or sales velocity.
- Receivables Turnover
- Receivables turnover showed a downward trend from 6.22 in 2020 to around 5.15 in 2025. The decline indicates that the company is collecting its receivables less frequently each year, which could impact cash flow if it reflects longer collection periods.
- Payables Turnover
- The payables turnover ratio exhibited some volatility, decreasing from 4.72 in 2020 to a low of 4.03 in 2023, before recovering to 4.75 in 2025. This pattern suggests variability in how quickly the company is settling its payables, with a tendency to stretch payment periods more recently.
- Working Capital Turnover
- Working capital turnover showed notable fluctuations, dipping to its lowest point at 2.15 in 2021, then increasing significantly to 3.07 by 2025. This trend indicates improving efficiency in utilizing working capital to generate sales, especially in the latter years.
- Average Inventory Processing Period (Days)
- The average inventory processing period increased from 164 days in 2020 to a peak of 180 days in 2023, before slightly decreasing to 172 days in 2025. Longer inventory holding periods suggest slower inventory movement or accumulation of stock.
- Average Receivable Collection Period (Days)
- This metric increased from 59 days in 2020 to 71 days in 2025, reflecting a gradual lengthening in the time taken to collect receivables, which aligns with the declining receivables turnover ratio.
- Operating Cycle (Days)
- The operating cycle extended from 223 days in 2020 to around 243 days in 2025, indicating the overall time from inventory acquisition to cash collection has grown, reflecting longer inventory and receivables periods.
- Average Payables Payment Period (Days)
- This period increased from 77 days in 2020 to a peak of 91 days in 2023, then declined back to 77 days by 2025. The fluctuation illustrates a varying approach to managing payables, with an initial tendency to delay payments followed by a return to a shorter payment period.
- Cash Conversion Cycle (Days)
- The cash conversion cycle gradually lengthened from 146 days in 2020 to 166 days in 2025. This increase underscores a broadening gap between cash outflows and inflows, pointing to reduced liquidity efficiency in converting investments in inventory and receivables back into cash.
Overall, the data suggests that operational efficiency related to inventory and receivables management has generally declined over the period, as evidenced by decreasing turnover ratios and increasing processing and collection periods. Conversely, working capital turnover improved notably in recent years, indicating better utilization of working capital despite slower movements in inventory and receivables. Fluctuations in payables turnover and payment periods suggest varying supplier payment strategies. The lengthening cash conversion cycle highlights a need for ongoing monitoring of liquidity dynamics.
Turnover Ratios
Average No. Days
Inventory Turnover
Apr 25, 2025 | Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of products sold, excluding amortization of intangible assets | |||||||
Inventories | |||||||
Short-term Activity Ratio | |||||||
Inventory turnover1 | |||||||
Benchmarks | |||||||
Inventory Turnover, Competitors2 | |||||||
Abbott Laboratories | |||||||
CVS Health Corp. | |||||||
Intuitive Surgical Inc. | |||||||
Inventory Turnover, Sector | |||||||
Health Care Equipment & Services | |||||||
Inventory Turnover, Industry | |||||||
Health Care |
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
1 2025 Calculation
Inventory turnover = Cost of products sold, excluding amortization of intangible assets ÷ Inventories
= ÷ =
2 Click competitor name to see calculations.
- Cost of Products Sold, Excluding Amortization of Intangible Assets
- The cost of products sold has demonstrated a generally upward trend over the five-year period. Starting from 9,424 million USD in April 2020, it increased to 11,632 million USD by April 2025. There was a slight decrease between 2021 and 2022, from 10,483 million USD to 10,145 million USD, but the cost resumed its growth in subsequent years. This suggests an overall increase in production or procurement expenses, possibly reflecting higher sales volume, inflationary pressures, or changes in product mix.
- Inventories
- Inventories showed a consistent increase from 4,229 million USD in April 2020 to 5,476 million USD in April 2025. The growth is steady year over year, with the exception of a minor decline from 5,293 million USD in April 2023 to 5,217 million USD in April 2024 before rising again. This upward movement could indicate stockpiling in anticipation of higher demand, longer production cycles, or changes in inventory management policies.
- Inventory Turnover Ratio
- The inventory turnover ratio has fluctuated over the observed period without a clear directional trend. It started at 2.23 in April 2020, increased to 2.43 in April 2021, then declined to 2.2 in April 2022 and further to 2.03 in April 2023, before experiencing small recoveries to 2.15 in April 2024 and slightly dropping again to 2.12 in April 2025. The decline in turnover ratio between 2021 and 2023 indicates slower inventory movement, which may imply inefficiencies or challenges in inventory management. The modest increase in the last two years points to slight improvements but remains below the initial level.
- Summary of Trends
- The data reveals rising costs of products sold and increasing inventory levels, which may suggest growth in operations or supply chain complexities. The fluctuating inventory turnover ratio reflects variability in inventory efficiency, with a notable dip indicating potential overstocking or slower sales periods followed by partial recovery.
Receivables Turnover
Apr 25, 2025 | Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net sales | |||||||
Accounts receivable, less allowances and credit losses | |||||||
Short-term Activity Ratio | |||||||
Receivables turnover1 | |||||||
Benchmarks | |||||||
Receivables Turnover, Competitors2 | |||||||
Abbott Laboratories | |||||||
CVS Health Corp. | |||||||
Elevance Health Inc. | |||||||
Intuitive Surgical Inc. | |||||||
UnitedHealth Group Inc. | |||||||
Receivables Turnover, Sector | |||||||
Health Care Equipment & Services | |||||||
Receivables Turnover, Industry | |||||||
Health Care |
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
1 2025 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, less allowances and credit losses
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data over the six-year period reveals distinct trends in net sales, accounts receivable, and receivables turnover.
- Net Sales
- Net sales show a consistent upward trajectory across the years, increasing from US$28,913 million in 2020 to US$33,537 million in 2025. This represents a steady annual growth, with only a minor dip observed between 2022 and 2023 when sales declined slightly from US$31,686 million to US$31,227 million. The overall trend indicates stable revenue growth over the period.
- Accounts Receivable, Less Allowances and Credit Losses
- Accounts receivable also demonstrate a continuous increase, rising from US$4,645 million in 2020 to US$6,515 million in 2025. The growth in receivables generally aligns with the growth in net sales, indicating that the company is extending larger amounts of credit or that collections are becoming slower. The increase is steady without any abrupt changes across the years.
- Receivables Turnover
- The receivables turnover ratio, which measures how efficiently the company collects its receivables, shows a declining trend over the period. It drops from 6.22 in 2020 to 5.15 in 2025, suggesting that the company’s ability to convert receivables into cash is weakening slightly. Despite fluctuations, the ratio remains above 5, which still reflects a reasonable collection efficiency, but the gradual decrease is noteworthy.
Overall, the company exhibits robust sales growth accompanied by a proportional increase in accounts receivable. However, the gradual decline in receivables turnover ratio may indicate an elongation in the collection period or a relaxed credit policy, which could impact liquidity if the trend continues.
Payables Turnover
Apr 25, 2025 | Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Cost of products sold, excluding amortization of intangible assets | |||||||
Accounts payable | |||||||
Short-term Activity Ratio | |||||||
Payables turnover1 | |||||||
Benchmarks | |||||||
Payables Turnover, Competitors2 | |||||||
Abbott Laboratories | |||||||
CVS Health Corp. | |||||||
Elevance Health Inc. | |||||||
Intuitive Surgical Inc. | |||||||
UnitedHealth Group Inc. | |||||||
Payables Turnover, Sector | |||||||
Health Care Equipment & Services | |||||||
Payables Turnover, Industry | |||||||
Health Care |
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
1 2025 Calculation
Payables turnover = Cost of products sold, excluding amortization of intangible assets ÷ Accounts payable
= ÷ =
2 Click competitor name to see calculations.
- Cost of Products Sold, Excluding Amortization of Intangible Assets
- The cost of products sold demonstrates a generally increasing trend over the surveyed periods. Beginning at 9,424 million USD in April 2020, it rises to 11,632 million USD by April 2025. A slight dip is observed between April 2021 and April 2022, where the amount decreases from 10,483 million USD to 10,145 million USD, before resuming an upward trajectory. This indicates an overall growth in production or sales volume, or potential increases in input costs over time.
- Accounts Payable
- Accounts payable shows a fluctuating but moderately increasing pattern. Starting at 1,996 million USD in April 2020, it reaches 2,449 million USD by April 2025, with a peak at 2,662 million USD in April 2023 followed by a decline and slight recovery. This suggests some variability in the timing of payments to suppliers or changes in purchasing practices.
- Payables Turnover Ratio
- The payables turnover ratio exhibits volatility throughout the timeline. It begins at 4.72 in April 2020, increases to 4.98 in April 2021, then drops to 4.03 in April 2023 before recovering to 4.75 by April 2025. The decline followed by recovery indicates periods where payable turnover slowed, suggesting extended payment periods or slower supplier payment cycles, with normalization occurring later. Overall, the ratio reflects moderate efficiency in managing payables without drastic deterioration.
Working Capital Turnover
Apr 25, 2025 | Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current assets | |||||||
Less: Current liabilities | |||||||
Working capital | |||||||
Net sales | |||||||
Short-term Activity Ratio | |||||||
Working capital turnover1 | |||||||
Benchmarks | |||||||
Working Capital Turnover, Competitors2 | |||||||
Abbott Laboratories | |||||||
CVS Health Corp. | |||||||
Elevance Health Inc. | |||||||
Intuitive Surgical Inc. | |||||||
UnitedHealth Group Inc. | |||||||
Working Capital Turnover, Sector | |||||||
Health Care Equipment & Services | |||||||
Working Capital Turnover, Industry | |||||||
Health Care |
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
1 2025 Calculation
Working capital turnover = Net sales ÷ Working capital
= ÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital values exhibit fluctuations over the observed periods. It increased from $11,665 million in 2020 to $14,039 million in 2021, followed by a decline to $10,665 million in 2022. Subsequently, it rose to $12,624 million in 2023 but then decreased slightly to $11,146 million in 2024 and further to $10,935 million in 2025. Overall, there is no consistent trend, but the working capital tends to oscillate around the $11,000 to $14,000 million range.
- Net Sales
- Net sales show a generally upward trend across the periods. Starting at $28,913 million in 2020, net sales increased steadily each year, reaching $33,537 million in 2025. There was a minor dip in growth rate in 2023 where sales slightly decreased from $31,686 million in 2022 to $31,227 million, but the upward trajectory resumed thereafter.
- Working Capital Turnover Ratio
- The working capital turnover ratio reflects the efficiency of using working capital to generate sales. The ratio decreased from 2.48 in 2020 to 2.15 in 2021, indicating lower turnover efficiency. Thereafter, the ratio improved significantly to 2.97 in 2022 but declined again to 2.47 in 2023. The ratio rose once more to 2.9 in 2024 and further to 3.07 in 2025, showing a trend towards increasing efficiency in the later years.
- Overall Analysis
- The data suggests that despite fluctuations in working capital, net sales have generally grown over the six-year period. The improving working capital turnover ratio in recent years indicates enhanced operational efficiency in utilizing working capital to generate higher sales volumes. However, the volatile working capital levels imply potential variability in short-term asset and liability management. The slight sales decline in 2023 may warrant further examination but does not disrupt the overall positive sales progression.
Average Inventory Processing Period
Apr 25, 2025 | Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Inventory turnover | |||||||
Short-term Activity Ratio (no. days) | |||||||
Average inventory processing period1 | |||||||
Benchmarks (no. days) | |||||||
Average Inventory Processing Period, Competitors2 | |||||||
Abbott Laboratories | |||||||
CVS Health Corp. | |||||||
Intuitive Surgical Inc. | |||||||
Average Inventory Processing Period, Sector | |||||||
Health Care Equipment & Services | |||||||
Average Inventory Processing Period, Industry | |||||||
Health Care |
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio exhibits some fluctuations over the evaluated periods. It begins at 2.23 in April 2020, rises to a peak of 2.43 in April 2021, and then generally declines to 2.12 by April 2025. This indicates an initial improvement in the efficiency of inventory usage followed by a gradual slowdown in turnover efficiency in subsequent years.
- Average Inventory Processing Period
- The average inventory processing period, expressed in days, shows a somewhat inverse pattern compared to inventory turnover. It decreases from 164 days in April 2020 to 150 days in April 2021, indicating faster inventory processing initially. Following this, the period increases to 180 days in April 2023, before slightly decreasing again to 172 days by April 2025. This trend suggests a lengthening of the inventory holding period after an early improvement, with some moderation towards the end of the period examined.
- Overall Trends and Insights
- The observed trends in inventory turnover and average processing period are consistent with each other, reflecting changes in inventory management efficiency. The initial improvements around 2021 suggest efforts to optimize inventory usage and reduce holding times. The subsequent decline in turnover and increase in processing days indicate challenges in maintaining those efficiencies or strategic decisions to hold more inventory. The slight improvements in the final periods signal potential stabilization or corrective measures.
Average Receivable Collection Period
Apr 25, 2025 | Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Receivables turnover | |||||||
Short-term Activity Ratio (no. days) | |||||||
Average receivable collection period1 | |||||||
Benchmarks (no. days) | |||||||
Average Receivable Collection Period, Competitors2 | |||||||
Abbott Laboratories | |||||||
CVS Health Corp. | |||||||
Elevance Health Inc. | |||||||
Intuitive Surgical Inc. | |||||||
UnitedHealth Group Inc. | |||||||
Average Receivable Collection Period, Sector | |||||||
Health Care Equipment & Services | |||||||
Average Receivable Collection Period, Industry | |||||||
Health Care |
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio has exhibited a declining trend over the observed period. Starting at 6.22 in April 2020, it decreased to 5.51 in April 2021. Although there was a slight recovery to 5.71 in April 2022, the ratio continued to decline thereafter, reaching 5.15 by April 2025. This indicates a gradual reduction in the efficiency of collecting receivables over time.
- Average Receivable Collection Period
- The average receivable collection period, measured in days, has shown an increasing trend across the years. It increased from 59 days in April 2020 to 66 days in April 2021, with minor fluctuations following that year. The collection period lengthened to 71 days by April 2025, signaling that it is taking the company more time to collect its receivables.
- Insights
- The inverse relationship between the receivables turnover ratio and the average collection period is evident and consistent with expectations. The trend indicates a gradual decline in the efficiency of receivables management, as evidenced by the lengthening of the average collection period alongside a decreasing turnover ratio. This could reflect changes in credit policies, customer payment behavior, or other operational factors affecting collections.
Operating Cycle
Apr 25, 2025 | Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | |||||||
Average receivable collection period | |||||||
Short-term Activity Ratio | |||||||
Operating cycle1 | |||||||
Benchmarks | |||||||
Operating Cycle, Competitors2 | |||||||
Abbott Laboratories | |||||||
CVS Health Corp. | |||||||
Intuitive Surgical Inc. | |||||||
Operating Cycle, Sector | |||||||
Health Care Equipment & Services | |||||||
Operating Cycle, Industry | |||||||
Health Care |
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibited some fluctuations over the observed years. It decreased from 164 days in April 2020 to 150 days in April 2021, indicating an improvement in inventory turnover efficiency during that timeframe. However, the period then increased to 166 days in April 2022, followed by a significant rise to 180 days in April 2023. Afterward, it slightly declined to 170 days in April 2024 and marginally increased again to 172 days by April 2025. Overall, this indicates a somewhat unstable inventory management performance, with a general upward trend after the initial improvement.
- Average Receivable Collection Period
- The average receivable collection period shows a general increase over the years. Starting at 59 days in April 2020, it rose to 66 days in April 2021, then slightly decreased to 64 days in April 2022. However, it increased again in the following years, reaching 70 days in April 2023, 69 days in April 2024, and further increasing to 71 days by April 2025. This trend suggests a gradual slowdown in the collection of receivables, which may affect the company's liquidity position.
- Operating Cycle
- The operating cycle, which combines inventory processing and receivable collection periods, experienced an overall upward trend. It started at 223 days in April 2020 and decreased slightly to 216 days in April 2021, indicating a minor improvement in the operational efficiency. From this point, the cycle extended to 230 days in April 2022 and further expanded significantly to 250 days in April 2023. Although it then contracted slightly to 239 days in April 2024, it again increased to 243 days by April 2025. This suggests an increasing time lag between cash outflow and cash inflow, potentially impacting working capital management.
Average Payables Payment Period
Apr 25, 2025 | Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Payables turnover | |||||||
Short-term Activity Ratio (no. days) | |||||||
Average payables payment period1 | |||||||
Benchmarks (no. days) | |||||||
Average Payables Payment Period, Competitors2 | |||||||
Abbott Laboratories | |||||||
CVS Health Corp. | |||||||
Elevance Health Inc. | |||||||
Intuitive Surgical Inc. | |||||||
UnitedHealth Group Inc. | |||||||
Average Payables Payment Period, Sector | |||||||
Health Care Equipment & Services | |||||||
Average Payables Payment Period, Industry | |||||||
Health Care |
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibited some fluctuation over the analyzed periods. It started at 4.72 in April 2020, increased slightly to 4.98 in April 2021, then declined to a low of 4.03 by April 2023. After this decline, the ratio improved again to 4.65 in April 2024 and further to 4.75 in April 2025. This pattern suggests a period of slower payables processing around 2022 and 2023, followed by a recovery towards quicker turnover in the last two years.
- Average Payables Payment Period
- The average number of days to settle payables showed an inverse trend relative to the payables turnover ratio. Initially, the payment period decreased from 77 days in April 2020 to a low of 73 days in April 2021, indicating faster payments. However, it then extended notably to 91 days by April 2023, reflecting a significant lengthening of the payment cycle. Subsequently, the payment period shortened again to 78 days in April 2024 and to 77 days in April 2025, aligning with the improved payables turnover ratio.
- Overall Analysis
- The data indicates a cyclical pattern in payables management with an initial improvement followed by a temporary decline and then a return to better efficiency in recent years. The inverse relationship between payables turnover and payment period is consistent, reinforcing the conclusion that the company temporarily extended its payment terms or slowed payables processing during the middle years before enhancing its working capital management towards the end of the period. This may reflect strategic adjustments or responses to external factors impacting cash flow management.
Cash Conversion Cycle
Apr 25, 2025 | Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | |||||||
Average receivable collection period | |||||||
Average payables payment period | |||||||
Short-term Activity Ratio | |||||||
Cash conversion cycle1 | |||||||
Benchmarks | |||||||
Cash Conversion Cycle, Competitors2 | |||||||
Abbott Laboratories | |||||||
CVS Health Corp. | |||||||
Intuitive Surgical Inc. | |||||||
Cash Conversion Cycle, Sector | |||||||
Health Care Equipment & Services | |||||||
Cash Conversion Cycle, Industry | |||||||
Health Care |
Based on: 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24).
1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows some fluctuations over the observed years. It decreased from 164 days in 2020 to 150 days in 2021, indicating improved inventory turnover. However, it increased notably to 180 days in 2023, before slightly declining to 172 days in 2025. This suggests a general trend of increasing inventory holding duration after an initial improvement.
- Average Receivable Collection Period
- The receivable collection period has experienced a gradual upward trend. Starting at 59 days in 2020, it increased to 66 days in 2021 and further rose to 71 days by 2025. This pattern indicates that the company is taking progressively longer to collect payments from customers over the years.
- Average Payables Payment Period
- The average payables payment period fluctuates without a clear trend. It decreased from 77 days in 2020 to 73 days in 2021, then increased to 91 days in 2023 before declining again to 77 days in 2025. The highest value was observed in 2023, which may indicate a temporary extension in payment terms or delayed payments during that year.
- Cash Conversion Cycle
- The cash conversion cycle displays an increasing trend overall. Beginning at 146 days in 2020, it slightly decreased to 143 days in 2021 but then steadily rose to 166 days by 2025. This increase suggests a lengthening of the time between cash outflows for inventory and payables and the cash inflows from receivables, indicating potentially reduced liquidity efficiency over the period.