Boston Scientific Corp (BSX)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	13,974,000	10,508,000	10,348,000	9,999,000	9,228,000	12,104,000	11,689,000	11,502,000	11,625,000	11,168,000	10,855,000	9,774,000	9,553,000	9,751,000	9,790,000	10,420,000	10,349,000	10,035,000	9,758,000	9,649,000
Total current assets	US$ in thousands	6,514,000	6,504,000	5,886,000	5,704,000	5,760,000	5,144,000	5,083,000	5,065,000	6,317,000	6,229,000	6,758,000	6,101,000	6,694,000	6,160,000	5,803,000	4,823,000	4,699,000	4,847,000	6,334,000	6,234,000
Total current liabilities	US$ in thousands	4,933,000	4,579,000	4,562,000	4,083,000	3,803,000	3,549,000	3,883,000	4,275,000	4,274,000	4,022,000	4,073,000	3,393,000	3,681,000	3,302,000	3,108,000	3,976,000	4,866,000	4,254,000	4,850,000	4,479,000
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,974,000K ÷ ($6,514,000K – $4,933,000K)
= 8.84

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Boston Scientific Corp. has shown fluctuations in its working capital turnover ratio over the past eight quarters.

In Q4 2023, the working capital turnover ratio was 9.01, indicating that the company generated $9.01 in sales for every $1 of working capital invested. This ratio improved from the previous quarter, Q3 2023, where the ratio was 7.14. This suggests that in Q4 2023, Boston Scientific Corp. was able to utilize its working capital more efficiently to drive sales.

Looking further back, the working capital turnover ratio was 10.11 in Q2 2023 and 8.05 in Q1 2023. The ratio has shown volatility over the quarters, with the highest ratio in this period recorded in Q2 2022 at 15.39 and the lowest in Q4 2022 at 6.48.

Overall, the trend in the working capital turnover ratio for Boston Scientific Corp. has been fluctuating, indicating variability in how effectively the company manages its working capital to generate sales revenue. It is essential for the company to closely monitor and manage its working capital to ensure optimal efficiency in its operations and financial performance.