Globus Medical (GMED)

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	2,519,355	2,478,596	2,236,530	1,898,454	1,568,476	1,226,440	1,096,949	1,068,982	1,022,843	998,366	973,939	961,307	958,102	941,526	927,903	825,809	789,042	767,264	747,381	792,998
Total current assets	US$ in thousands	2,177,260	2,056,530	1,923,890	1,828,570	1,915,370	1,917,340	1,210,010	1,070,430	983,344	920,001	891,168	916,598	864,516	980,514	891,998	814,373	821,765	811,951	696,891	641,800
Total current liabilities	US$ in thousands	855,913	818,065	794,146	786,324	392,347	428,722	155,220	167,547	159,204	145,255	146,017	141,491	140,164	122,525	130,042	123,677	120,792	99,980	106,126	97,962
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,519,355K ÷ ($2,177,260K – $855,913K)
= 1.91

Working capital turnover is a financial ratio that provides insight into how efficiently a company is utilizing its working capital to generate sales. Globus Medical's working capital turnover has fluctuated over the past few years, ranging from a low of 0.82 to a high of 2.00.

Initially, in March 2020, Globus Medical had a working capital turnover of 1.46, indicating that the company was able to generate $1.46 in sales for every dollar of working capital invested. Subsequently, the ratio decreased to 1.08 by September 2020, suggesting a potential inefficiency in working capital management.

However, the ratio showed signs of improvement in the following quarters, reaching a peak of 2.00 in September 2024. This indicates that Globus Medical effectively utilized its working capital to generate sales during that period.

Overall, the fluctuation in Globus Medical's working capital turnover may signify varying levels of efficiency in managing its working capital to drive sales. It is essential for the company to consistently monitor and optimize its working capital turnover to support sustainable growth and profitability.