Boston Scientific Corp (BSX)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	4.24	4.23	4.46	4.75	5.08	5.39	5.41	5.40	5.76	5.66	6.33	6.10	6.42	5.78	5.42	5.11	5.04	4.89	5.68	5.92
Receivables turnover	6.27	5.00	4.85	4.82	4.68	6.47	6.10	6.16	6.54	6.69	6.48	5.99	6.24	6.10	6.72	6.12	5.35	5.59	5.70	5.95
Payables turnover	11.19	10.94	11.17	11.22	11.00	12.00	12.96	13.48	11.67	13.46	13.14	13.95	16.90	18.83	20.12	13.75	14.69	14.95	14.08	14.59
Working capital turnover	8.84	5.46	7.82	6.17	4.72	7.59	9.74	14.56	5.69	5.06	4.04	3.61	3.17	3.41	3.63	12.30	—	16.92	6.58	5.50

The activity ratios of Boston Scientific Corp. provide insights into how efficiently the company manages its assets and liabilities to generate sales and cash flows.

1. Inventory turnover: The trend in inventory turnover shows a slight decline over the quarters, which may indicate that the company is taking longer to sell its inventory. A lower inventory turnover could potentially lead to higher carrying costs and obsolescence risks.

2. Receivables turnover: Boston Scientific Corp. has maintained a relatively stable receivables turnover ratio over the quarters, indicating consistent collection of accounts receivable. A high receivables turnover ratio suggests efficient management of credit sales and prompt collection efforts.

3. Payables turnover: The payables turnover ratio has fluctuated slightly but remained relatively steady over the quarters. A lower payables turnover ratio indicates a longer payment period to suppliers, which could be advantageous in managing cash flows but may strain supplier relationships if prolonged.

4. Working capital turnover: The working capital turnover ratio has shown variability but generally increasing over the quarters. A higher working capital turnover ratio indicates efficient utilization of working capital to generate sales. Boston Scientific Corp.'s increasing trend in this ratio suggests improving efficiency in converting working capital into revenue.

Overall, while the inventory turnover trend warrants attention, the stable receivables turnover and payables turnover ratios, along with the increasing working capital turnover ratio, suggest that Boston Scientific Corp. is effectively managing its working capital and credit policies to support its operations and generate sales. Monitoring inventory management practices could further enhance the company's overall efficiency.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	86.05	86.31	81.79	76.80	71.86	67.71	67.41	67.53	63.40	64.49	57.64	59.85	56.87	63.14	67.40	71.41	72.37	74.69	64.31	61.70
Days of sales outstanding (DSO)	days	58.20	72.98	75.27	75.78	77.92	56.42	59.86	59.21	55.83	54.55	56.32	60.91	58.50	59.82	54.32	59.62	68.18	65.33	64.04	61.32
Number of days of payables	days	32.63	33.35	32.68	32.52	33.18	30.41	28.17	27.07	31.27	27.11	27.77	26.16	21.59	19.39	18.14	26.54	24.84	24.42	25.92	25.02

The activity ratios of Boston Scientific Corp. depict the efficiency of the company's management in managing its assets and liabilities.

1. Days of Inventory on Hand (DOH): This ratio measures how many days it takes for the company to sell its inventory. An increase in DOH indicates that the company is holding onto inventory for a longer period, which could tie up working capital. Boston Scientific Corp.'s DOH has been increasing over the quarters, reaching 208.67 days in Q4 2023 from 172.26 days in Q4 2022. This trend suggests a slower turnover of inventory, potentially leading to higher carrying costs.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes the company to collect its accounts receivable. A lower DSO is preferable as it indicates faster collection of receivables. Boston Scientific Corp.'s DSO has been fluctuating but remained relatively stable, ranging from 54.34 days in Q3 2022 to 58.13 days in Q2 2023. This suggests that the company has effectively managed its credit policies or customer payment terms.

3. Number of Days of Payables: This ratio signifies how long the company takes to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to settle its bills, potentially indicating improved cash flow management. Boston Scientific Corp.'s number of days of payables has increased slightly over the quarters, going up to 79.13 days in Q4 2023 from 67.35 days in Q1 2022. This trend may suggest that the company is extending its payment terms, which could positively impact cash flow.

In summary, Boston Scientific Corp.'s activity ratios indicate a need for closer monitoring of inventory management to improve turnover and reduce carrying costs. The company has maintained stable collection practices for accounts receivable and has slightly extended its payment terms to suppliers, potentially benefiting cash flow management.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	4.89	3.99	4.08	4.04	3.77	5.33	5.20	5.08	5.16	5.30	5.21	4.76	4.58	4.72	4.71	4.97	4.98	5.17	5.36	5.41
Total asset turnover	0.40	0.31	0.31	0.30	0.28	0.38	0.36	0.36	0.36	0.35	0.35	0.32	0.31	0.32	0.32	0.35	0.34	0.38	0.40	0.41

The fixed asset turnover ratio for Boston Scientific Corp. has been relatively stable over the past eight quarters, ranging from 4.98 to 5.53. This indicates that the company generates between $4.98 to $5.53 in revenue for every dollar invested in fixed assets. The consistent high values of this ratio suggest that Boston Scientific is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio for the company has also remained fairly constant, with values ranging from 0.38 to 0.41. This implies that Boston Scientific generates approximately $0.38 to $0.41 in revenue for every dollar of total assets it holds. While this ratio is lower in magnitude compared to the fixed asset turnover, it still indicates that the company is effectively utilizing its total assets to generate sales.

Overall, the long-term activity ratios suggest that Boston Scientific Corp. is efficiently managing and utilizing both its fixed and total assets to drive revenue generation. The stability of these ratios over time implies a consistent performance in asset utilization, which is a positive indicator of the company's operational efficiency and effectiveness.