Edwards Lifesciences Corp (EW)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	2.75	2.95	2.94	3.01	3.03	3.59	3.74	3.83	3.79	3.59	3.37	3.08	2.89	2.99	3.16	3.66	3.68	3.68	3.43	3.25
Receivables turnover	7.74	7.87	7.49	7.65	8.34	8.67	8.40	8.40	8.96	8.48	7.69	7.63	8.54	7.96	—	—	8.01	—	—	—
Payables turnover	15.93	15.95	14.93	15.20	13.14	17.56	17.02	17.61	13.45	18.99	17.72	15.73	11.78	14.23	15.14	15.99	13.09	16.54	14.20	13.95
Working capital turnover	2.11	2.06	2.27	2.52	2.59	2.06	2.33	2.33	2.43	2.00	2.02	1.97	2.00	2.05	2.38	2.55	2.09	2.12	2.39	2.22

Inventory Turnover:
- The inventory turnover ratio for Edwards Lifesciences Corp has been relatively stable over the past eight quarters, ranging from 1.18 to 1.72.
- This indicates that the company is efficient in managing its inventory levels and converting them into sales. A higher ratio is generally preferred as it signifies quicker inventory turnover.

Receivables Turnover:
- The receivables turnover ratio for the company has also shown consistency, fluctuating between 6.93 and 8.11 over the same period.
- This ratio indicates how efficiently the company collects payments from its customers. A higher ratio suggests that the company is collecting its receivables quickly.

Payables Turnover:
- Edwards Lifesciences Corp's payables turnover ratio has varied between 5.35 and 7.90, reflecting the speed at which the company pays its suppliers.
- A higher payables turnover ratio implies that the company is paying its suppliers more quickly, which could potentially have implications for cash flow management.

Working Capital Turnover:
- The working capital turnover ratio has shown some variability, ranging from 2.06 to 2.60 over the past eight quarters.
- This ratio indicates how effectively the company is utilizing its working capital to generate sales. A higher ratio suggests better efficiency in utilizing resources to generate sales.

Overall, Edwards Lifesciences Corp appears to be effectively managing its inventory, receivables, payables, and working capital to support its business operations and generate sales over the analyzed quarters.

Average number of days

		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
Days of inventory on hand (DOH)	days	132.86	123.92	124.14	121.41	120.47	101.67	97.66	95.38	96.43	101.63	108.21	118.46	126.51	122.06	115.51	99.79	99.06	99.20	106.37	112.18
Days of sales outstanding (DSO)	days	47.17	46.37	48.71	47.73	43.77	42.09	43.47	43.46	40.72	43.04	47.47	47.82	42.75	45.85	—	—	45.56	—	—	—
Number of days of payables	days	22.91	22.88	24.44	24.01	27.78	20.78	21.45	20.73	27.14	19.22	20.60	23.20	30.98	25.65	24.10	22.83	27.88	22.06	25.70	26.17

To analyze Edwards Lifesciences Corp's activity ratios, we will focus on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables. These ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): This ratio measures the average number of days it takes for the company to sell its inventory. A lower DOH indicates faster inventory turnover, which is generally favorable. Edwards Lifesciences Corp's DOH has been fluctuating but generally increasing from Q1 2022 to Q4 2023, peaking at 309.03 days in Q4 2023. This trend suggests a potential slowdown in inventory turnover, which could indicate excess inventory or production inefficiencies.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect payments from customers. A lower DSO indicates efficient receivables management. Edwards Lifesciences Corp's DSO has also been fluctuating but relatively stable between Q1 2022 and Q4 2023, ranging from 45.01 days to 52.71 days. The stability in DSO suggests the company is effectively managing its accounts receivable.

3. Number of Days of Payables: This ratio measures how long it takes the company to pay its suppliers. A higher number of days of payables indicates the company is taking longer to settle its payables, potentially improving cash flow. Edwards Lifesciences Corp's number of days of payables has shown variability, with an increasing trend from Q1 2022 to Q4 2023, reaching 53.28 days in Q4 2023. This could suggest extended payment terms with suppliers or a deliberate cash flow management strategy.

Overall, while Edwards Lifesciences Corp's activity ratios show some fluctuations, the company appears to be managing its inventory and receivables efficiently. The increase in days of inventory on hand and payables may warrant further investigation to ensure optimal working capital management and operational efficiency.

Long-term

	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
Fixed asset turnover	3.43	3.46	3.40	3.33	3.28	3.42	3.43	3.44	3.37	3.48	3.41	3.16	3.15	3.43	3.62	4.08	4.11	4.27	4.26	4.28
Total asset turnover	0.64	0.62	0.63	0.63	0.65	0.62	0.63	0.63	0.61	0.62	0.64	0.62	0.61	0.64	0.67	0.74	0.67	0.70	0.71	0.70

The fixed asset turnover ratio for Edwards Lifesciences Corp has been relatively stable over the past eight quarters, ranging between 3.30 and 3.46. This indicates that the company generates approximately $3.30 to $3.46 in sales revenue for every $1 of fixed assets it holds. A higher fixed asset turnover ratio is generally considered favorable as it suggests efficient utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has fluctuated slightly between 0.62 and 0.65 over the same period. This ratio reflects how effectively the company is using all its assets to generate sales. A total asset turnover ratio of 0.62 to 0.65 indicates that Edwards Lifesciences Corp generates around $0.62 to $0.65 in sales for every $1 of total assets.

Overall, both the fixed asset turnover and total asset turnover ratios for Edwards Lifesciences Corp appear to be at reasonable levels, with the company effectively utilizing its assets to generate revenue. It is important to monitor these ratios over time to ensure continued efficiency in asset utilization and revenue generation.