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.
Peer comparison
Dec 31, 2023
See also:
Boston Scientific Corp Working Capital Turnover (Quarterly Data)