Globus Medical (GMED)
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 | 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 | 785,368 | 769,639 | 742,660 | 721,505 |
Total current assets | US$ in thousands | 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 | 687,468 | 637,063 | 583,933 | 617,568 |
Total current liabilities | US$ in thousands | 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 | 111,403 | 94,921 | 84,184 | 79,492 |
Working capital turnover | 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 | 1.36 | 1.42 | 1.49 | 1.34 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,568,476K ÷ ($1,915,370K – $392,347K)
= 1.03
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. It is calculated by dividing net sales by average working capital. A higher ratio indicates better efficiency in utilizing working capital.
Analyzing the working capital turnover ratios of Globus Medical Inc over the past eight quarters, we observe some fluctuations in the ratio. In Q4 2023, the ratio stands at 1.03, which indicates that the company generated $1.03 in revenue for every dollar of working capital invested during the quarter. This figure is lower compared to the previous quarter but higher than in Q3 and Q2 of 2023.
The downward trend from Q1 to Q3 2023 might suggest that the company's efficiency in utilizing working capital to generate sales temporarily decreased. However, the ratio improved in Q4 2023 compared to the preceding quarters.
Looking at the trend over the past year, the working capital turnover ratio has shown some variability, with peaks in Q2 and Q3 of 2022. This could reflect changes in the company's operational efficiency and how effectively it manages its working capital to support revenue generation.
Overall, the working capital turnover ratios of Globus Medical Inc indicate fluctuations in the efficiency of utilizing working capital to drive sales, with the most recent quarter showing a slight improvement compared to the preceding quarters. Further analysis of the company's working capital management practices and operational performance may provide additional insights into these fluctuations.
Peer comparison
Dec 31, 2023