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.