Intuitive Surgical Inc (ISRG)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	7,616,100	6,548,300	5,970,600	4,546,000	4,583,900
Total current assets	US$ in thousands	7,888,000	6,253,000	5,844,900	6,625,900	4,662,600
Total current liabilities	US$ in thousands	1,658,700	1,422,100	1,149,800	965,200	1,030,200
Working capital turnover		1.22	1.36	1.27	0.80	1.26

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,616,100K ÷ ($7,888,000K – $1,658,700K)
= 1.22

Intuitive Surgical Inc's working capital turnover has fluctuated over the past five years. The ratio, which measures how efficiently the company is using its working capital to generate sales, stood at 1.14 in 2023, representing a decrease from the previous year's figure of 1.29. This decline suggests that the company was less effective in utilizing its working capital to support its operations and generate revenue in 2023 compared to 2022.

Looking further back, in 2021, the working capital turnover was 1.22, indicating a relatively efficient use of working capital. However, in 2020, the ratio dropped significantly to 0.77, reflecting a potential inefficiency in the management of working capital during that year. The ratio then rebounded to 1.23 in 2019, signaling improved efficiency compared to 2020.

Overall, the fluctuating trend in Intuitive Surgical Inc's working capital turnover over the past five years indicates varying levels of effectiveness in utilizing working capital to support its sales activities. The company may need to focus on optimizing its working capital management strategies to maintain a consistent and efficient level of working capital turnover in the future.