Edwards Lifesciences Corp (EW)

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	5,997,700	5,823,000	5,652,900	5,488,400	5,362,000	5,360,300	5,343,800	5,344,000	5,219,100	5,093,000	4,925,300	4,477,100	4,393,400	4,375,800	4,330,900	4,493,400	4,355,200	4,158,800	3,968,100	3,822,500
Total current assets	US$ in thousands	4,035,700	4,067,500	3,647,000	3,257,200	3,095,800	3,513,900	3,263,100	3,241,300	3,180,700	3,515,500	3,322,900	3,069,200	3,091,000	2,980,400	2,690,300	2,507,900	2,984,000	2,739,700	2,354,700	2,368,800
Total current liabilities	US$ in thousands	1,195,400	1,238,900	1,157,200	1,082,000	1,022,400	917,900	969,100	949,900	1,032,300	966,500	886,200	799,000	893,900	846,300	873,200	746,900	902,400	775,800	697,000	646,500
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (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 shown a fluctuating trend over the past eight quarters. The ratio ranged from a high of 2.60 in Q4 2022 to a low of 2.06 in Q3 2023, indicating some variability in the efficiency of the company in utilizing its working capital.

A higher working capital turnover ratio suggests that the company is effectively generating sales from its working capital, which is a positive sign of efficient operations. Conversely, a lower ratio may indicate inefficiencies in managing working capital or potential liquidity issues.

Overall, the average working capital turnover ratio for Edwards Lifesciences Corp over the period analyzed was 2.26, indicating that, on average, the company generated $2.26 in sales for every $1 of working capital invested. This suggests that the company has been relatively efficient in utilizing its working capital to generate revenue.

It is important for the company to closely monitor its working capital turnover ratio to ensure optimal management of its working capital resources and maintain efficient operations.