Intuitive Surgical Inc (ISRG)

Payables 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
Cost of revenue (ttm)	US$ in thousands	4,874,600	4,710,700	4,566,000	4,451,800	4,378,700	4,201,600	4,117,300	3,987,400	3,793,900	3,671,400	3,523,600	3,398,200	3,245,400	2,324,800	2,188,200	2,030,900	1,991,100	1,991,300	1,953,000	1,931,400
Payables	US$ in thousands	193,400	218,700	194,400	194,400	188,700	196,200	199,700	164,100	147,000	164,200	149,700	128,100	121,200	120,000	117,900	103,100	81,600	116,000	108,900	133,400
Payables turnover		25.20	21.54	23.49	22.90	23.20	21.41	20.62	24.30	25.81	22.36	23.54	26.53	26.78	19.37	18.56	19.70	24.40	17.17	17.93	14.48

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,874,600K ÷ $193,400K
= 25.20

The payables turnover ratio of Intuitive Surgical Inc has shown some fluctuations over the periods under review. The ratio demonstrates how efficiently the company is managing its trade payables by measuring how many times the company pays off its suppliers within a specific timeframe.

From March 31, 2020, to June 30, 2022, the payables turnover ratio ranged between 14.48 and 23.54, which may indicate some variability in the company's payment practices and relationship with suppliers. However, from September 30, 2022, to December 31, 2024, the ratio remained relatively stable within the range of 20.62 to 25.20, suggesting a more consistent approach towards managing payables during this period.

Overall, the payables turnover ratio suggests that Intuitive Surgical Inc has been effectively managing its trade payables, with the ratio generally indicating that the company is paying off its suppliers in a timely manner across the various reporting periods, ensuring a healthy working capital cycle. Further investigation into the company's payment policies and supplier relationships could provide additional insights into its financial management practices.