Edwards Lifesciences Corp (EW)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,997,700	5,362,000	5,219,100	4,382,800	4,333,200
Total current assets	US$ in thousands	4,035,700	3,095,800	3,180,700	3,091,000	2,984,000
Total current liabilities	US$ in thousands	1,195,400	1,022,400	1,032,300	893,900	902,400
Working capital turnover		2.11	2.59	2.43	1.99	2.08

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,997,700K ÷ ($4,035,700K – $1,195,400K)
= 2.11

The working capital turnover of Edwards Lifesciences Corp has exhibited fluctuations over the past five years. In 2023, the working capital turnover decreased to 2.11 from 2.60 in 2022, indicating that the company's efficiency in utilizing its working capital to generate sales decreased during this period. However, the 2023 turnover ratio was still higher than the ratios in 2020 and 2019.

Despite the decline in 2023, the company's working capital turnover has remained relatively stable over the five-year period, with ratios ranging from 2.00 to 2.60. This suggests that Edwards Lifesciences Corp has generally been effective in managing its working capital to support its sales activities.

It is essential for the company to monitor its working capital turnover closely to ensure that it strikes the right balance between efficiently utilizing its working capital and generating sales revenue. Further analysis of the components of working capital and the underlying factors impacting the turnover ratio may provide insights into areas for improvement or optimization within the company's operations.