Boston Scientific Corp (BSX)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	16,746,000	15,910,000	15,228,000	14,707,000	14,240,000	13,757,000	13,400,000	13,045,000	12,682,000	12,567,000	12,329,000	12,162,000	11,888,000	11,469,000	11,196,000	10,122,000	9,913,000	10,110,000	10,158,000	10,786,000
Total current assets	US$ in thousands	6,920,000	8,761,000	8,991,000	8,185,000	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
Total current liabilities	US$ in thousands	6,399,000	5,910,000	5,576,000	4,916,000	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
Working capital turnover		32.14	5.58	4.46	4.50	9.01	7.15	10.12	8.05	6.48	7.88	10.27	15.39	5.82	5.20	4.17	3.74	3.29	3.54	3.77	12.73

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $16,746,000K ÷ ($6,920,000K – $6,399,000K)
= 32.14

Boston Scientific Corp's working capital turnover has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate revenues.

The working capital turnover ratio started at a high of 12.73 on March 31, 2020, indicating that the company was efficiently utilizing its working capital to generate sales. However, the ratio decreased significantly in the subsequent quarters, dropping to as low as 3.29 on December 31, 2020.

From March 31, 2021, the working capital turnover ratio began to increase gradually, reaching a peak of 32.14 on December 31, 2024. This significant increase suggests improved efficiency in managing working capital to generate sales during that period.

Overall, fluctuations in the working capital turnover ratio indicate changes in the company's ability to efficiently convert its working capital into revenue. It is essential for Boston Scientific Corp to maintain a balance between its working capital levels and revenue generation to ensure sustained operational efficiency and financial performance.