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.