ICU Medical Inc (ICUI)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,382,050	2,259,130	2,280,000	1,316,310	1,271,000
Total current assets	US$ in thousands	1,441,980	1,221,270	1,235,200	1,029,810	920,777
Total current liabilities	US$ in thousands	556,182	481,838	494,559	200,777	195,488
Working capital turnover		2.69	3.06	3.08	1.59	1.75

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,382,050K ÷ ($1,441,980K – $556,182K)
= 2.69

The working capital turnover ratio for ICU Medical Inc has displayed fluctuations over the past five years. In 2020, the ratio stood at 1.75, indicating that the company generated $1.75 in net sales revenue for every $1 of working capital invested during that period. In the subsequent year, the ratio decreased to 1.59, reflecting a decrease in the efficiency of using working capital to generate sales.

However, the trend reversed in 2022 and 2023, with the working capital turnover ratio significantly improving to 3.08 and 3.06, respectively. This indicates that ICU Medical Inc was able to generate $3.08 and $3.06 in sales for every dollar of working capital invested, showcasing a notable increase in operational efficiency and effectiveness in utilizing its working capital during these years.

The ratio dipped slightly to 2.69 in 2024, which is still higher than in 2020 and 2021, suggesting that the company continued to effectively utilize its working capital to drive sales despite a slight decrease in efficiency compared to the preceding years.

In conclusion, the overall trend of ICU Medical Inc's working capital turnover indicates fluctuations but generally shows an improvement in the efficiency of utilizing working capital to generate sales over the analyzed period. It is essential for the company to maintain this upward trend to ensure optimal operational performance and financial health.