Edwards Lifesciences Corp (EW)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	5,724,300	5,872,600	5,999,100	6,143,400	6,004,800	5,819,000	5,657,100	5,500,800	5,382,400	5,363,800	5,355,000	5,357,100	5,232,500	5,094,500	4,925,200	4,474,200	4,386,300	4,368,700	4,321,800	4,483,700
Total current assets	US$ in thousands	6,285,400	6,727,700	4,516,000	4,170,500	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
Total current liabilities	US$ in thousands	1,505,200	1,944,100	1,217,000	1,110,800	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
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,724,300K ÷ ($6,285,400K – $1,505,200K)
= 1.20

The working capital turnover of Edwards Lifesciences Corp has shown fluctuating trends over the period under consideration. The ratio peaked at 2.60 as of December 31, 2022, indicating that the company was able to generate $2.60 in revenue for every dollar of working capital invested. This suggests efficient utilization of its working capital during that period.

However, the working capital turnover ratio started declining after December 2022, reaching a low of 1.20 by December 31, 2024. This downward trend indicates a potential decrease in the company's efficiency in generating revenue from its working capital.

Overall, it is essential for Edwards Lifesciences Corp to continuously monitor and manage its working capital effectively to ensure optimal operational performance and sustainable growth in the long run.