Intuitive Surgical Inc (ISRG)

Cash conversion cycle

		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
Cash conversion cycle	days	146.79	147.41	144.98	143.22	140.18	130.73	118.07	121.32	124.30	115.92	109.09	110.41	100.82	117.66	123.21	135.89	147.76	148.63	141.87	133.10

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 111.36 + 49.91 – 14.48
= 146.79

The cash conversion cycle of Intuitive Surgical Inc has shown fluctuations over the past few years. The company's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, was relatively stable from March 2020 to December 2021, ranging between 100 to 150 days.

However, from March 2022 to December 2024, we observe some volatility in the cash conversion cycle, with fluctuations between 109 to 147 days. Generally, a shorter cash conversion cycle indicates a more efficient use of the company's resources and better liquidity.

It is important for investors and analysts to closely monitor the trend in the cash conversion cycle as it provides insights into the efficiency of the company's working capital management and its ability to generate cash flows from its operations. Intuitive Surgical Inc should aim to continually optimize its cash conversion cycle to improve financial performance and sustainability.