LeMaitre Vascular Inc (LMAT)

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	289,940	282,011	312,579	295,977	281,639	280,188	278,441	275,316	267,547	265,592	262,196	231,031	220,642	213,264	198,609	208,001	203,956	202,175	168,273	142,095
Total current assets	US$ in thousands	194,598	182,184	174,490	164,768	161,733	153,142	148,486	141,411	139,883	134,016	90,020	90,657	94,263	102,252	91,869	89,722	92,092	99,695	98,159	95,418
Total current liabilities	US$ in thousands	29,879	29,029	25,855	23,904	25,329	23,439	23,405	18,267	21,813	22,114	21,480	22,300	25,145	44,446	44,357	16,594	20,851	19,323	17,422	19,385
Working capital turnover		1.76	1.84	2.10	2.10	2.06	2.16	2.23	2.24	2.27	2.37	3.83	3.38	3.19	3.69	4.18	2.84	2.86	2.52	2.08	1.87

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $289,940K ÷ ($194,598K – $29,879K)
= 1.76

The working capital turnover ratio measures how effectively a company is using its working capital to generate sales revenue. In the case of Lemaitre Vascular Inc, the working capital turnover ratio has been relatively stable over the past eight quarters, ranging from 1.17 to 1.28.

A working capital turnover ratio of 1.17 in Q4 2023 indicates that, on average, Lemaitre Vascular Inc generated $1.17 in sales for every $1 of working capital invested. This suggests that the company is efficiently utilizing its working capital to support its sales activities.

The slight fluctuations in the ratio over the quarters do not indicate any significant deterioration or improvement in the company's working capital management. However, it is important to consider other factors such as industry norms and company-specific circumstances to assess the effectiveness of Lemaitre Vascular Inc's working capital management strategy.

Overall, Lemaitre Vascular Inc's stable working capital turnover ratio suggests effective utilization of working capital to support its sales activities, but further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's performance in this area.