Intuitive Surgical Inc (ISRG)

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	3.28	3.18	3.30	3.43	3.59	3.66	4.10	4.21	4.25	4.39	4.87	5.20	5.53	3.97	3.84	3.52	3.31	3.00	3.03	3.11
Receivables turnover	7.31	7.37	7.31	6.93	6.74	7.59	7.82	7.35	6.95	7.45	7.36	6.76	7.54	8.17	7.63	7.19	6.96	7.54	8.78	8.88
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
Working capital turnover	1.67	1.53	1.32	1.25	1.22	1.01	1.09	1.22	1.36	1.25	1.21	1.30	1.26	1.21	1.07	0.91	0.79	0.82	0.90	1.25

Intuitive Surgical Inc's inventory turnover has shown a fluctuating trend over the years, ranging between 3.00 to 5.53. The increasing trend since December 31, 2021, indicates that the company has been managing its inventory more efficiently.

The receivables turnover ratio has shown a slightly fluctuating trend, indicating that the company is collecting its receivables at a stable rate. The ratios have ranged between 6.74 to 8.88, showing consistency in the collection of receivables.

The payables turnover ratio has been relatively stable, fluctuating between 17.17 to 26.78. The ratios indicate that Intuitive Surgical Inc has been managing its payables effectively and maintaining good relationships with its suppliers.

The working capital turnover ratio has also shown a relatively stable trend, ranging between 0.79 to 1.67. The increasing trend since March 31, 2021, suggests that the company has been utilizing its working capital more efficiently to generate revenue.

Overall, Intuitive Surgical Inc's activity ratios suggest effective management of inventory, receivables, payables, and working capital, indicating a well-balanced operational performance and financial health.

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	111.36	114.81	110.63	106.53	101.75	99.69	89.11	86.65	85.93	83.22	75.00	70.14	66.03	91.83	95.03	103.66	110.26	121.51	120.64	117.23
Days of sales outstanding (DSO)	days	49.91	49.55	49.90	52.63	54.16	48.09	46.66	49.69	52.51	49.02	49.60	54.03	48.42	44.67	47.85	50.76	52.46	48.39	41.58	41.08
Number of days of payables	days	14.48	16.95	15.54	15.94	15.73	17.04	17.70	15.02	14.14	16.32	15.51	13.76	13.63	18.84	19.67	18.53	14.96	21.26	20.35	25.21

Intuitive Surgical Inc's activity ratios reflect the efficiency of its operations in managing its inventories, receivables, and payables.

1. Days of Inventory on Hand (DOH): The trend in DOH shows a gradual decrease from 117.23 days as of March 31, 2020, to 111.36 days as of December 31, 2024, indicating that the company has become more efficient in managing its inventory levels over the years. A decrease in DOH signifies that the company is selling its products more quickly and efficiently, which can lead to lower holding costs and potential obsolescence risks.

2. Days of Sales Outstanding (DSO): The DSO ratio reflects Intuitive Surgical's ability to collect payments from its customers. The trend in DSO also shows a decreasing pattern from 41.08 days as of March 31, 2020, to 49.91 days as of December 31, 2024. A decreasing DSO suggests that the company is collecting payments more promptly, improving its cash flow efficiency. However, the slight increase in DSO towards the end of the period might indicate a potential area for improvement in managing receivables.

3. Number of Days of Payables: This ratio measures how long it takes for the company to pay its suppliers. The trend in the number of days of payables shows fluctuations but remains relatively stable over the period, ranging from 13.63 days as of December 31, 2021, to 17.70 days as of June 30, 2023. A longer payable period can indicate that the company is effectively managing its working capital by using trade credit from suppliers, thereby improving cash flow. However, a significant increase in payables days could signal strained relationships with suppliers.

Overall, Intuitive Surgical Inc's activity ratios suggest effective management of its working capital, with improvements in inventory turnover and efficiency in collecting receivables. The stable trend in payables days indicates a balanced approach in managing its supplier relationships and cash flow.

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	1.93	1.92	1.97	2.06	2.15	2.37	2.50	2.63	2.76	2.82	2.93	3.11	3.14	3.27	3.23	2.95	2.85	2.94	3.08	3.42
Total asset turnover	0.48	0.48	0.49	0.49	0.49	0.50	0.51	0.52	0.50	0.48	0.45	0.45	0.44	0.44	0.43	0.41	0.40	0.42	0.44	0.47

The Fixed Asset Turnover ratio for Intuitive Surgical Inc has shown a decreasing trend over the years, starting at 3.42 in March 2020 and decreasing to 1.93 by December 2024. This indicates that the company's ability to generate sales revenue from its fixed assets has been declining.

On the other hand, the Total Asset Turnover ratio remained relatively stable over the same period, fluctuating between 0.40 and 0.52. This ratio measures the company's efficiency in generating sales from all its assets, including fixed and current assets. Despite fluctuations, the Total Asset Turnover ratio indicates a more stable performance compared to the Fixed Asset Turnover ratio.

Overall, the decreasing trend in the Fixed Asset Turnover ratio suggests that Intuitive Surgical Inc may need to evaluate the utilization of its fixed assets to improve efficiency and profitability in the long term.