Edwards Lifesciences Corp (EW)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	1.03	1.18	1.23	1.72	1.35
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	1.14	2.11	2.60	2.44	2.00

In analyzing the activity ratios of Edwards Lifesciences Corp, we observe the following trends:

1. Inventory Turnover:
- The inventory turnover ratio has fluctuated over the years, starting at 1.35 in 2020 and peaking at 1.72 in 2021 before declining to 1.03 in 2024.
- A higher inventory turnover ratio indicates that the company is selling its inventory more frequently, which is generally positive for liquidity and profitability.

2. Receivables Turnover:
- Data is unavailable for the receivables turnover ratio for all years provided. Without this ratio, it is difficult to assess how efficiently the company is collecting on its receivables.

3. Payables Turnover:
- Similar to receivables turnover, information on payables turnover is not provided for any year. This ratio would have helped in understanding how quickly the company pays its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio has shown variability, with a peak of 2.60 in 2022 and a trough of 1.14 in 2024.
- This ratio indicates the efficiency of the company in utilizing its working capital to generate sales. A higher ratio suggests better utilization of resources.

Overall, while the inventory turnover and working capital turnover ratios provide some insights into the operational efficiency and liquidity management of Edwards Lifesciences Corp, the absence of data for receivables and payables turnover limits the comprehensive analysis of the company's activity ratios.

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	354.94	309.03	295.78	212.38	271.00
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Based on the provided data, let's analyze the activity ratios of Edwards Lifesciences Corp:

1. Days of Inventory on Hand (DOH):
- December 31, 2020: 271.00 days
- December 31, 2021: 212.38 days
- December 31, 2022: 295.78 days
- December 31, 2023: 309.03 days
- December 31, 2024: 354.94 days

The Days of Inventory on Hand showed a decreasing trend from 2020 to 2021, indicating more efficient inventory management. However, from 2021 to 2024, there was a significant increase in the number of days of inventory on hand, suggesting potential issues in managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO):
- All years: Data not provided

Unfortunately, data on the Days of Sales Outstanding is not available, making it challenging to assess the efficiency of Edwards Lifesciences Corp in collecting receivables from customers.

3. Number of Days of Payables:
- All years: Data not provided

Similarly, no data is available for the Number of Days of Payables, which makes it difficult to evaluate how long Edwards Lifesciences Corp takes to pay its suppliers.

In conclusion, based on the available data, Edwards Lifesciences Corp experienced fluctuations in its Days of Inventory on Hand, indicating changes in inventory management efficiency. However, without data on Days of Sales Outstanding and Number of Days of Payables, a complete assessment of the company's overall activity ratios and working capital management is not possible.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	3.12	3.19	3.14
Total asset turnover	0.42	0.64	0.65	0.62	0.61

Edwards Lifesciences Corp's fixed asset turnover has shown a slight upward trend over the past few years, from 3.14 in 2020 to 3.19 in 2021, before decreasing slightly to 3.12 in 2022. Unfortunately, data for 2023 and 2024 are not available. This ratio indicates that the company generated $3.12 of revenue for every $1 invested in fixed assets in 2022.

Regarding total asset turnover, the company's performance has been improving steadily from 0.61 in 2020 to 0.65 in 2022, suggesting that the company generated $0.65 in revenue for every $1 of total assets in 2022. However, there was a dip in 2024 to 0.42. It is essential to further investigate the reasons behind the drop in 2024 to understand the impact on the company's efficiency in utilizing its total assets to generate sales.