Masimo Corporation (MASI)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.68 | 3.00 | 3.29 | 3.27 | 3.15 | 3.04 | 3.33 | 3.89 | 3.13 | 2.46 | 1.94 | 2.01 | 2.14 | 2.11 | 2.04 | 1.94 | 1.86 | 1.82 | 2.23 | 2.70 |
| Receivables turnover | 103.45 | 4.97 | 5.47 | 5.44 | 5.35 | 5.57 | 5.92 | — | 107.96 | — | — | — | 6.10 | — | — | — | — | — | — | — |
| Payables turnover | 8.50 | 6.08 | 7.82 | 8.16 | 6.83 | 6.26 | 6.80 | 7.87 | 5.67 | 4.55 | 3.56 | 4.90 | 5.70 | 7.02 | 6.37 | 6.66 | 6.25 | 4.17 | 3.87 | 6.37 |
| Working capital turnover | 3.33 | 3.18 | 3.40 | 2.99 | 3.08 | 3.25 | 3.48 | 3.44 | 3.04 | 2.70 | 2.51 | 1.28 | 1.28 | 1.33 | 1.42 | 1.49 | 1.32 | 1.18 | 1.21 | 1.19 |
Masimo Corporation's inventory turnover has generally shown an increasing trend over the years, indicating that the company is managing its inventory more efficiently. The ratio has gradually improved from 2.70 in March 2020 to 4.68 in December 2024, suggesting that Masimo is selling and replenishing its inventory at a faster rate.
On the other hand, the receivables turnover ratio fluctuates significantly, with some periods showing no data reported. However, when data is available, the ratio indicates an efficient collection of receivables, particularly notable in December 2022 and December 2024, where the turnover ratios were significantly high at 107.96 and 103.45, respectively.
In terms of payables turnover, Masimo Corporation shows variations, fluctuating from 3.56 in June 2022 to 8.50 in December 2024. The higher ratios suggest that the company is taking longer to pay its suppliers, which could have implications for its relationships with suppliers.
The working capital turnover has shown a generally increasing trend, reflecting the effectiveness of utilizing working capital to generate sales revenue. The ratio has steadily increased from 1.19 in March 2020 to 3.33 in December 2024, indicating that Masimo is efficiently using its working capital to support its operations and drive revenue growth.
Overall, Masimo Corporation's activity ratios demonstrate mixed performance in managing its inventory, receivables, payables, and working capital. The company should continue to focus on maintaining efficient inventory turnover, improving collection of receivables, optimizing payables management, and utilizing working capital effectively to support its operational activities.
Average number of days
| 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 | 77.98 | 121.84 | 110.91 | 111.52 | 115.76 | 120.15 | 109.63 | 93.73 | 116.52 | 148.43 | 188.38 | 181.95 | 170.61 | 173.22 | 178.83 | 188.35 | 196.72 | 200.31 | 163.34 | 135.41 |
| Days of sales outstanding (DSO) | days | 3.53 | 73.49 | 66.70 | 67.09 | 68.24 | 65.51 | 61.67 | — | 3.38 | — | — | — | 59.85 | — | — | — | — | — | — | — |
| Number of days of payables | days | 42.93 | 60.04 | 46.70 | 44.75 | 53.42 | 58.27 | 53.64 | 46.37 | 64.37 | 80.24 | 102.54 | 74.54 | 64.04 | 51.98 | 57.34 | 54.80 | 58.36 | 87.58 | 94.28 | 57.33 |
Masimo Corporation's activity ratios provide insights into its efficiency in managing its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
Masimo's inventory turnover has improved over the years, with the number of days of inventory on hand decreasing from 135.41 days as of March 31, 2020, to 77.98 days by December 31, 2024. This suggests that Masimo has been managing its inventory more efficiently, possibly through better inventory control or demand forecasting.
2. Days of Sales Outstanding (DSO):
The days of sales outstanding metric were not available for the earlier periods, with data only starting from December 31, 2021. The DSO decreased from 59.85 days as of December 31, 2021, to 3.53 days by December 31, 2024. This indicates that Masimo has been collecting its receivables more quickly, which can improve cash flow and reduce the risk of bad debts.
3. Number of Days of Payables:
Masimo's payables turnover has fluctuated over the years, with the number of days of payables ranging from 44.75 days as of March 31, 2024, to 102.54 days as of June 30, 2022. A lower number of days of payables indicates that Masimo is paying its suppliers more quickly, which can be positive for maintaining good relationships but may also impact cash flow management.
Overall, Masimo Corporation's activity ratios reflect improvements in managing inventory levels and collecting receivables efficiently. However, fluctuations in payables turnover suggest variability in the company's payment practices. Further analysis would be required to understand the reasons behind these trends and their impact on Masimo's overall financial performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.31 | 4.89 | 4.89 | 4.77 | 4.84 | 5.15 | 5.39 | 5.80 | 5.12 | 4.77 | 4.10 | 4.15 | 4.54 | 4.39 | 4.29 | 4.27 | 4.20 | 4.10 | 3.98 | 3.85 |
| Total asset turnover | 0.77 | 0.66 | 0.70 | 0.67 | 0.68 | 0.71 | 0.73 | 0.75 | 0.64 | 0.58 | 0.51 | 0.65 | 0.66 | 0.68 | 0.70 | 0.73 | 0.67 | 0.64 | 0.64 | 0.66 |
Masimo Corporation's fixed asset turnover ratio has shown a generally increasing trend over the observed period, starting at 3.85 in March 31, 2020, reaching a peak of 5.80 in March 31, 2023, and then slightly declining to 4.89 by June 30, 2024. This indicates that the company has been able to generate more sales revenue per dollar of fixed assets invested over time, highlighting efficiency in utilizing its fixed assets to generate revenue.
In contrast, the total asset turnover ratio has shown some fluctuations over the period, with a noticeable increase from 0.66 in March 31, 2020, to 0.77 by December 31, 2024. This suggests an improvement in the company's overall efficiency in generating sales revenue relative to its total assets, indicating better asset utilization.
Overall, the improvement in both fixed asset turnover and total asset turnover ratios implies that Masimo Corporation has been effectively managing its assets to generate revenue, which is a positive sign for the company's long-term activity performance.