Intuitive Surgical Inc (ISRG)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	7,616,100	7,306,600	7,073,300	6,797,300	6,548,300	6,326,000	6,171,000	6,121,000	5,900,400	5,678,800	5,338,700	4,705,300	4,491,300	4,439,900	4,466,200	4,687,300	4,531,000	4,299,800	4,065,100	3,850,400
Total current assets	US$ in thousands	7,888,000	8,902,900	8,031,800	6,877,000	6,253,000	6,293,100	6,292,500	5,803,200	5,844,900	5,728,000	6,016,600	6,066,400	6,625,900	6,300,300	5,899,000	4,691,500	4,662,600	4,317,000	4,071,600	4,025,000
Total current liabilities	US$ in thousands	1,658,700	1,676,400	1,538,400	1,307,400	1,422,100	1,233,400	1,175,000	1,112,200	1,149,800	1,027,300	1,004,600	904,600	965,200	894,700	924,800	945,900	1,030,200	930,900	807,500	740,200
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

December 31, 2023 calculation

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

Intuitive Surgical Inc's working capital turnover ratio has exhibited fluctuations over the past eight quarters. The ratio ranged from a low of 0.95 in Q3 2023 to a high of 1.29 in Q4 2022.

A higher working capital turnover ratio generally indicates more efficient utilization of working capital to generate sales. In this case, the ratio was the highest in Q4 2022, suggesting that Intuitive Surgical Inc was able to generate more sales relative to its working capital in that quarter.

Conversely, a lower ratio, such as the one in Q3 2023, may imply that the company's efficiency in deploying working capital to generate revenue decreased during that period. However, it's important to consider industry norms and trends over time when interpreting these fluctuations.

Overall, variations in working capital turnover ratios can provide insights into Intuitive Surgical Inc's operational efficiency and management of working capital resources to support business activities.