Masimo Corporation (MASI)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 2.77 2.68 2.94 3.48 3.13 2.46 1.94 2.01 2.14 2.11 2.04 1.94 1.86 1.82 2.23 2.70 2.66 2.76 3.04 3.15
Receivables turnover 5.33 5.55 5.90 — 107.96 — — — 6.10 — — — — — — — — — — —
Payables turnover 6.00 5.52 6.01 7.03 5.67 4.55 3.56 4.90 5.70 7.02 6.37 6.66 6.25 4.17 3.87 6.37 5.66 7.43 8.22 8.92
Working capital turnover 3.06 3.23 3.46 3.43 3.04 2.70 2.51 1.28 1.28 1.33 1.42 1.49 1.32 1.18 1.21 1.19 1.14 1.16 1.23 1.20

The activity ratios of Masimo Corporation indicate how efficiently the company manages its resources and operations.

1. Inventory turnover: The trend in inventory turnover shows a fluctuating pattern over the periods, ranging from 1.82 to 3.48. This ratio reflects how many times Masimo's inventory is sold and replaced during the year. A higher turnover generally signifies efficient inventory management, with a faster rate of selling and restocking products.

2. Receivables turnover: The data shows significant variations in receivables turnover, with some periods showing no data. This ratio measures how efficiently Masimo collects revenues from its credit customers. A higher turnover implies quicker collection of receivables, which can improve cash flow and reduce the risk of bad debts.

3. Payables turnover: The payables turnover ratio has been inconsistent but generally ranging between 3.56 to 8.92. This ratio indicates how quickly Masimo pays its suppliers and creditors. A higher turnover suggests efficient management of payables and potentially favorable relationships with suppliers.

4. Working capital turnover: The working capital turnover ratio has also shown fluctuations, indicating the efficiency of Masimo in generating revenue from its working capital. A higher turnover reflects that the company is effectively utilizing its working capital to generate sales revenue.

Overall, analyzing these activity ratios can provide insights into Masimo Corporation's operational performance and efficiency in managing its assets, liabilities, and working capital.

Average number of days

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
Days of inventory on hand (DOH) days 131.92 136.32 124.09 105.01 116.52 148.43 188.38 181.95 170.61 173.22 178.83 188.35 196.72 200.31 163.34 135.41 137.02 132.19 120.20 115.73
Days of sales outstanding (DSO) days 68.49 65.74 61.88 — 3.38 — — — 59.85 — — — — — — — — — — —
Number of days of payables days 60.88 66.11 60.72 51.95 64.37 80.24 102.54 74.54 64.04 51.98 57.34 54.80 58.36 87.58 94.28 57.33 64.50 49.13 44.38 40.91

Masimo Corporation's activity ratios show varying trends over the past few quarters.

1. Days of Inventory on Hand (DOH):
- The trend in DOH has been fluctuating with a high of 200.31 days in Sep 2020 and a low of 105.01 days in Mar 2023.
- Overall, the company appears to have managed its inventory efficiently in recent quarters, as the DOH has been declining from elevated levels.

2. Days of Sales Outstanding (DSO):
- DSO data is missing for some quarters, indicating potential issues with reporting or calculation.
- The available data shows a decrease in DSO from 68.49 days in Dec 2023 to 3.38 days in Mar 2019, suggesting an improvement in the collection of receivables.

3. Number of Days of Payables:
- The trend in payables days has been somewhat inconsistent, with fluctuations in the number of days the company takes to pay its suppliers.
- Notably, there was a significant increase in payables days in Dec 2020 at 94.28 days, followed by a decrease to 40.91 days in Mar 2019. This indicates potential changes in the company's payment practices.

Overall, the analysis of Masimo Corporation's activity ratios suggests that the company has been making efforts to effectively manage its inventory, improve its receivables collection, and optimize its payables processes. Monitoring these ratios in conjunction with other financial metrics can provide a comprehensive view of the company's operational efficiency and effectiveness.

Long-term

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
Fixed asset turnover 4.82 5.13 5.38 5.78 5.12 4.77 4.10 4.15 4.54 4.39 4.29 4.27 4.20 4.10 3.98 3.85 4.27 4.36 4.41 5.24
Total asset turnover 0.67 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 0.67 0.70 0.73 0.74

Masimo Corporation's long-term activity ratios indicate how efficiently the company is utilizing its assets over an extended period. The fixed asset turnover ratio has been relatively stable, ranging from 3.85 to 5.78 over the past five years. This signifies that for every dollar invested in fixed assets, Masimo generates revenue between 3.85 to 5.78 dollars. The trend is generally positive, indicating improved efficiency in utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio has varied between 0.51 to 0.75 during the same period. This metric reflects how well Masimo generates sales relative to its total assets. The company's ability to generate revenue from its total asset base has shown some fluctuations but overall improvement. A higher total asset turnover ratio suggests better asset utilization and efficiency in generating sales.

Overall, Masimo Corporation has demonstrated relatively stable and improving efficiency in utilizing both fixed assets and total assets to generate sales over the analyzed period. The increasing trend in the fixed asset turnover ratio and the overall improvement in the total asset turnover ratio indicate enhanced operational efficiency and effective asset management practices within the company.