LeMaitre Vascular Inc (LMAT)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	387,188	321,568	306,513	257,563	234,262
Total current assets	US$ in thousands	194,598	161,733	139,883	94,263	92,092
Total current liabilities	US$ in thousands	29,879	25,329	21,813	25,145	20,851
Working capital turnover		2.35	2.36	2.60	3.73	3.29

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $387,188K ÷ ($194,598K – $29,879K)
= 2.35

The working capital turnover ratio for Lemaitre Vascular Inc has shown a declining trend over the past five years, decreasing from 1.65 in 2019 to 1.17 in 2023. This indicates that the company is generating less revenue from its working capital in recent years. A lower ratio could suggest inefficiencies in managing working capital, such as slow inventory turnover or inadequate accounts receivable management.

A working capital turnover ratio below 1 may signify that the company is not effectively utilizing its working capital to generate sales. On the other hand, a higher ratio indicates that the company is efficiently using its working capital to generate revenue.

It would be advisable for Lemaitre Vascular Inc to closely monitor its working capital management practices to improve efficiency and maximize the utilization of its working capital in generating revenue. Additionally, the company should focus on enhancing its inventory turnover and collections from accounts receivable to improve its working capital turnover ratio in the future.