Masimo Corporation (MASI)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,053,900 | 2,073,900 | 1,239,150 | 1,143,740 | 937,837 |
| Total current assets | US$ in thousands | 1,231,900 | 1,308,600 | 1,238,500 | 1,101,160 | 996,062 |
| Total current liabilities | US$ in thousands | 563,800 | 630,000 | 267,700 | 233,836 | 172,219 |
| Working capital turnover | 3.07 | 3.06 | 1.28 | 1.32 | 1.14 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,053,900K ÷ ($1,231,900K – $563,800K)
= 3.07
Masimo Corporation's working capital turnover has shown a consistent improvement over the years, indicating a more efficient management of its working capital. The ratio increased from 1.14 in 2019 to 3.07 in 2023, signaling that the company is generating sales revenue at a faster pace relative to its working capital. This suggests that Masimo is effectively utilizing its current assets and liabilities to support its operations and drive sales growth. The upward trend in the working capital turnover ratio reflects positively on the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2023