Intuitive Surgical Inc (ISRG)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	3.08	4.20	4.50	4.19
Receivables turnover	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	7.02	6.73	6.42	7.03
Payables turnover	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	14.87	18.37	17.79	15.04
Working capital turnover	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	1.25	1.27	1.25	1.17

Intuitive Surgical Inc's activity ratios provide insights into how efficiently the company is managing its assets and operations.

1. Inventory Turnover: The trend in inventory turnover shows a slight decline over the quarters, indicating that the company is selling through its inventory at a slightly slower pace. However, the turnover remains relatively high, indicating efficient management of inventory and a shorter holding period.

2. Receivables Turnover: The receivables turnover ratio demonstrates a consistent pattern of high turnover, suggesting that the company efficiently collects payments from customers. This is a positive sign of effective credit policies and timely collection efforts.

3. Payables Turnover: Intuitive Surgical Inc's payables turnover ratio shows a consistent decrease over the quarters, indicating a longer repayment period to suppliers. This could be a strategic approach to managing cash flows or negotiating favorable payment terms.

4. Working Capital Turnover: The working capital turnover ratio fluctuates across quarters but generally shows the company's ability to generate sales relative to its working capital. A higher turnover ratio implies efficient utilization of resources to generate revenue.

Overall, the activity ratios of Intuitive Surgical Inc suggest that the company is effectively managing its assets, receivables, payables, and working capital to support its operations and drive revenue generation.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	118.37	86.98	81.18	87.05
Days of sales outstanding (DSO)	days	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	51.97	54.24	56.87	51.91
Number of days of payables	days	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	24.55	19.87	20.52	24.28

Days of Inventory on Hand (DOH):
- Intuitive Surgical's average days of inventory on hand increased steadily throughout 2022 and continued to rise in 2023, reaching 186.05 days in Q4 2023. This indicates that the company is holding inventory for a longer period before selling it. A higher DOH may suggest slow-moving inventory or challenges in managing inventory levels efficiently.

Days of Sales Outstanding (DSO):
- The days of sales outstanding for Intuitive Surgical fluctuated over the quarters, but showed a decreasing trend overall from Q1 2022 to Q4 2023. The DSO decreased to 57.91 days in Q4 2023, indicating an improvement in the company's ability to collect receivables. A lower DSO suggests that the company is able to collect payments from customers more quickly.

Number of Days of Payables:
- Intuitive Surgical's number of days of payables varied over the quarters, but generally remained within a relatively stable range. In Q4 2023, the number of days of payables was at 28.76 days. This metric indicates the average number of days it takes the company to pay its suppliers. A longer number of days of payables may suggest a favorable credit relationship with suppliers, while a shorter number may signal a potential strain on cash flow.

Overall Assessment:
- Intuitive Surgical's activity ratios display mixed performance in managing its operations. The increasing trend in days of inventory on hand could potentially lead to higher carrying costs and inefficiencies in inventory management. However, the decreasing trend in days of sales outstanding reflects an improvement in collecting receivables, which can enhance cash flows. The stable number of days of payables indicates consistency in the company's payment practices to suppliers. It is important for Intuitive Surgical to strike a balance between these activity ratios to optimize working capital management and operational efficiency.

Long-term

	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
Fixed asset turnover	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	3.56	3.78	3.94	4.12
Total asset turnover	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	0.47	0.47	0.48	0.47

Intuitive Surgical Inc's fixed asset turnover has been showing a decreasing trend over the past quarters, with a value of 2.01 in Q4 2023 compared to 3.00 in Q1 2022. This indicates that the company is generating $2.01 in sales for every $1 of fixed assets invested, suggesting a decline in efficiency in utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover of Intuitive Surgical Inc has been relatively stable, ranging between 0.43 and 0.49 over the same period. This ratio measures the company's ability to generate sales from all assets, and the consistent performance suggests that the company is effectively utilizing its total assets to generate revenue.

Overall, while the fixed asset turnover of Intuitive Surgical Inc has been declining, the total asset turnover remains relatively stable, indicating that the company may need to focus on improving the efficiency of its fixed asset utilization to enhance overall operational performance.