Intuitive Surgical Inc (ISRG)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	8,961,500	7,616,100	6,548,300	5,970,600	4,546,000
Total current assets	US$ in thousands	7,111,000	7,888,000	6,253,000	5,844,900	6,625,900
Total current liabilities	US$ in thousands	1,745,300	1,658,700	1,422,100	1,149,800	965,200
Working capital turnover		1.67	1.22	1.36	1.27	0.80

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,961,500K ÷ ($7,111,000K – $1,745,300K)
= 1.67

Intuitive Surgical Inc's working capital turnover has shown a positive trend over the past five years, increasing from 0.80 in December 31, 2020, to 1.67 in December 31, 2024. This indicates that the company is generating more sales revenue relative to its working capital investment.

The working capital turnover of 1.27 in December 31, 2021, further supports this upward trend, suggesting improved efficiency in managing its current assets and liabilities to support sales growth. Although there was a slight decrease to 1.22 in December 31, 2023, the subsequent increase to 1.36 in December 31, 2022, and the significant improvement to 1.67 in December 31, 2024, demonstrate the company's ability to effectively utilize its working capital.

Overall, the increasing trend in Intuitive Surgical Inc's working capital turnover indicates the company's efficiency in turning its working capital into sales revenue, reflecting sound financial management practices.