Edwards Lifesciences Corp (EW)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	1.14	1.18	1.36	1.19	1.18	1.24	1.21	1.21	1.23	1.49	1.61	1.72	1.72	1.67	1.59	1.44	1.35	1.38	1.47	1.73
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	1.20	1.23	1.82	2.01	2.11	2.06	2.27	2.53	2.60	2.07	2.33	2.34	2.44	2.00	2.02	1.97	2.00	2.05	2.38	2.55

Edwards Lifesciences Corp's activity ratios provide insights into how efficiently the company manages its assets and liabilities.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory over a specific period. Edwards Lifesciences Corp's inventory turnover has gradually decreased from 1.73 on March 31, 2020, to 1.14 on December 31, 2024. A decreasing trend may indicate slowing sales or excess inventory levels.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly a company collects cash from its credit sales. Edwards Lifesciences Corp's receivables turnover data is not available, which limits the analysis of the company's effectiveness in managing its receivables.

3. Payables Turnover: The payables turnover ratio measures how efficiently a company pays its suppliers. Similar to receivables turnover, Edwards Lifesciences Corp's payables turnover data is not provided, making it challenging to assess the company's payment practices.

4. Working Capital Turnover: This ratio shows how effectively a company utilizes its working capital to generate sales. Edwards Lifesciences Corp's working capital turnover has fluctuated over the years, with a peak of 2.60 on December 31, 2022, and a dip to 1.20 on December 31, 2024. A higher ratio indicates a better utilization of working capital to drive revenue.

In summary, while Edwards Lifesciences Corp has shown some fluctuations in its activity ratios, a more detailed analysis incorporating additional financial metrics would provide a more comprehensive understanding of the company's operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	320.63	309.60	269.21	307.19	309.03	294.21	302.12	300.49	295.78	244.34	226.99	212.52	212.38	217.93	230.06	252.76	271.00	263.67	248.00	210.60
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Edwards Lifesciences Corp's days of inventory on hand (DOH) have fluctuated over the evaluation period. The DOH increased from 210.60 days as of March 31, 2020, to a peak of 320.63 days as of December 31, 2024. However, it decreased by March 31, 2022, before rising again.

Unfortunately, there is no available data for the days of sales outstanding (DSO) and number of days of payables throughout the evaluated period. This lack of data makes it challenging to provide a comprehensive analysis of Edwards Lifesciences Corp's activity ratios beyond just the DOH.

In general, a high DOH level indicates that the company may be holding excess inventory, which can tie up capital and indicate inefficient inventory management. However, without additional information on the DSO and number of days of payables, it is difficult to assess how effectively Edwards Lifesciences Corp is managing its accounts receivable and accounts payable in relation to its inventory levels.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	3.28	3.24	3.34	3.12	3.24	3.26	3.45	3.19	3.29	3.22	3.16	3.14	3.42	3.61	4.07
Total asset turnover	0.44	0.45	0.59	0.63	0.64	0.62	0.63	0.64	0.65	0.62	0.64	0.64	0.62	0.62	0.64	0.62	0.61	0.64	0.67	0.74

The fixed asset turnover ratio measures how efficiently a company's fixed assets are being used to generate sales. For Edwards Lifesciences Corp, the trend in the fixed asset turnover ratio over the past few years shows a gradual decline from 4.07 in March 2020 to 3.12 in December 2022. This indicates that the company may be becoming less efficient in utilizing its fixed assets to generate revenue during this period.

On the other hand, the total asset turnover ratio reflects how efficiently a company uses its total assets to generate sales. Edwards Lifesciences Corp's total asset turnover ratio has fluctuated over the years, with a peak of 0.74 in March 2020 and a low of 0.44 in December 2024. The decreasing trend in the total asset turnover ratio suggests that the company's ability to generate sales from its total assets has been declining.

In summary, based on the long-term activity ratios analysis, Edwards Lifesciences Corp's efficiency in utilizing its fixed assets to generate sales has been decreasing, while its ability to generate sales from its total assets has also shown a declining trend. This indicates potential challenges in maximizing asset utilization and generating revenue for the company over the past few years.