Globus Medical (GMED)
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 | 1.71 | 1.57 | 1.25 | 0.92 | 0.65 | 0.39 | 0.84 | 0.86 | 0.88 | 0.90 | 0.93 | 0.96 | 1.01 | 1.02 | 1.02 | 0.96 | 0.95 | 0.89 | 0.86 | 0.90 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 1.91 | 2.00 | 1.98 | 1.82 | 1.03 | 0.82 | 1.04 | 1.18 | 1.24 | 1.29 | 1.31 | 1.24 | 1.32 | 1.10 | 1.22 | 1.20 | 1.13 | 1.08 | 1.27 | 1.46 |
The inventory turnover ratio for Globus Medical shows a fluctuating trend over the years, ranging from 0.39 to 1.71. Initially, the ratio was low, indicating the company's slow inventory turnover, but it improved significantly in the later years, reaching a peak in December 2024. This suggests that the company has been managing its inventory more efficiently in recent periods.
On the other hand, the receivables turnover and payables turnover ratios are not available, as indicated by the absence of data for these metrics in the provided financial information. Without this information, it is challenging to assess the company's efficiency in collecting receivables and paying its suppliers.
The working capital turnover ratio for Globus Medical demonstrates a mixed performance over the years, ranging from 0.82 to 2.00. The ratio initially declined in the earlier years, indicating a decrease in the company's efficiency in generating revenue relative to its working capital. However, the ratio showed an increasing trend in the later years, suggesting improved efficiency in utilizing working capital to generate sales.
Overall, while the inventory turnover and working capital turnover ratios provide insights into Globus Medical's operational efficiency, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall liquidity and working capital management.
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 | 213.90 | 232.44 | 292.39 | 398.01 | 564.73 | 935.00 | 432.19 | 425.51 | 413.79 | 404.34 | 391.58 | 380.78 | 361.61 | 359.00 | 356.34 | 378.68 | 384.62 | 412.09 | 423.06 | 406.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for Globus Medical has fluctuated over the past years, ranging from a low of 213.90 days as of December 31, 2024, to a high of 935.00 days as of September 30, 2023. The trend indicates some volatility in managing and selling its inventory efficiently.
Regarding the Days of Sales Outstanding (DSO) and the Number of Days of Payables, the data provided are not available across the periods evaluated. This lack of information hinders a comprehensive analysis of these two activity ratios for Globus Medical.
In conclusion, based on the available data, the company should focus on optimizing its inventory management practices to reduce excess inventory and improve cash flow efficiency. Further information on DSO and payables turnover would provide a more comprehensive view of Globus Medical's overall activity ratios performance.
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 | — | — | — | — | — | 1.74 | 4.42 | 4.36 | 4.20 | 4.22 | 4.08 | 4.22 | 4.33 | 4.37 | 4.40 | 3.82 | 3.64 | 3.56 | 3.53 | 3.73 |
| Total asset turnover | 0.48 | 0.49 | 0.45 | 0.38 | 0.31 | 0.23 | 0.50 | 0.50 | 0.49 | 0.51 | 0.51 | 0.48 | 0.49 | 0.49 | 0.51 | 0.48 | 0.47 | 0.50 | 0.51 | 0.54 |
The Fixed Asset Turnover ratio of Globus Medical has shown a generally increasing trend from March 2020 to June 2023, indicating that the company has been more effective in generating revenue from its fixed assets over time. However, there was a significant decline in the ratio in the second half of 2023, dropping to 1.74 in September 2023 before data was not available for the following periods. This could suggest potential inefficiencies or changes in the utilization of fixed assets during that period.
On the other hand, the Total Asset Turnover ratio fluctuated within a relatively narrow range from March 2020 to June 2023, hovering around 0.50, which indicates that the company was generating sales revenue in relation to its total assets at a consistent pace. Notably, there were some fluctuations in the ratio towards the end of 2023 and into 2024, with an increase in March 2024 compared to the previous periods.
In summary, the Fixed Asset Turnover ratio exhibited a more distinct trend compared to the Total Asset Turnover ratio for Globus Medical during the period under consideration. The fluctuations in these ratios provide insights into the company's efficiency in utilizing fixed and total assets to generate revenue, highlighting potential areas for further analysis and improvement.