Boston Scientific Corp (BSX)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	1.87	1.75	2.14	2.34	2.60
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	32.14	9.01	6.48	5.82	3.29

Boston Scientific Corp's inventory turnover has shown a declining trend over the years, decreasing from 2.60 in 2020 to 1.87 in 2024. This indicates that the company is taking longer to sell its inventory, which could lead to potential liquidity issues or obsolete inventory concerns.

The absence of data for receivables turnover and payables turnover suggests that the company might not be efficiently managing its accounts receivable and accounts payable during the specified periods. This can impact cash flow management and working capital efficiency.

On the other hand, the working capital turnover ratio has been increasing significantly, from 3.29 in 2020 to 32.14 in 2024. This suggests that Boston Scientific Corp has been able to generate more revenue with each dollar of working capital employed, indicating improved operational efficiency and potentially positive financial performance.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	195.10	208.67	170.24	156.29	140.49
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Based on the provided data for Boston Scientific Corp, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- In 2020, Boston Scientific had 140.49 days of inventory on hand.
- This ratio increased to 156.29 days in 2021 and further to 170.24 days in 2022.
- The DOH continued to rise in 2023 to 208.67 days but slightly decreased to 195.10 days in 2024.
- The increasing trend in DOH indicates that Boston Scientific is taking longer to sell its inventory, which may lead to higher carrying costs and potential obsolescence risks.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding. This could be due to the unavailability of data or the company's specific accounting practices.

3. Number of Days of Payables:
- Similar to DSO, there is no specific data available for the Number of Days of Payables. It is possible that this information is not disclosed in the dataset or follows a non-conventional reporting format.

In conclusion, based on the provided information, Boston Scientific Corp has experienced an increasing trend in its Days of Inventory on Hand over the years, signaling potential inefficiencies in inventory management that may require attention to optimize working capital and operational performance.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	4.48	5.28	4.76
Total asset turnover	0.43	0.41	0.39	0.37	0.32

The Fixed Asset Turnover ratio measures how efficiently a company generates sales revenue from its fixed assets.

- In 2020, Boston Scientific Corp's Fixed Asset Turnover ratio was 4.76, indicating that for every dollar invested in fixed assets, the company generated $4.76 in sales revenue.
- This ratio improved to 5.28 in 2021, suggesting an increase in efficiency in utilizing its fixed assets to generate revenue.
- However, there was a slight decline in the Fixed Asset Turnover to 4.48 in 2022, which could indicate either a decrease in sales relative to fixed assets or an increase in fixed asset investments.
- The data for 2023 and 2024 are not available for analysis.

Moving on to the Total Asset Turnover ratio, this metric measures how effectively a company utilizes all its assets to generate sales.

- In 2020, Boston Scientific Corp had a Total Asset Turnover ratio of 0.32, indicating that for every dollar invested in assets, the company generated $0.32 in sales revenue.
- The Total Asset Turnover ratio improved steadily to 0.37 in 2021, 0.39 in 2022, 0.41 in 2023, and 0.43 in 2024. This upward trend suggests that the company became more efficient in generating sales revenue from its total assets over the years.

Overall, the analysis of Boston Scientific Corp's long-term activity ratios indicates varying trends in asset utilization efficiency. The Fixed Asset Turnover ratio fluctuated, while the Total Asset Turnover ratio demonstrated an overall improvement over the years, signifying the company's increased effectiveness in generating sales revenue from its total assets.