Masimo Corporation (MASI)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,039,900	2,053,900	2,073,900	1,239,150	1,143,740
Total current assets	US$ in thousands	1,225,800	1,231,900	1,308,600	1,238,500	1,101,160
Total current liabilities	US$ in thousands	617,700	563,800	630,000	267,700	233,836
Working capital turnover		3.35	3.07	3.06	1.28	1.32

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,039,900K ÷ ($1,225,800K – $617,700K)
= 3.35

The working capital turnover of Masimo Corporation has shown a positive trend over the years, increasing from 1.32 in 2020 to 3.35 in 2024. This indicates that the company is efficiently utilizing its working capital to generate sales revenue. The significant improvement in the working capital turnover ratio reflects the company's ability to effectively manage its current assets and liabilities to support its operational activities and overall growth. A higher working capital turnover ratio suggests that Masimo is efficiently converting its working capital into revenue multiple times during the year, which is a positive indicator of the company's financial health and operational efficiency. This trend demonstrates Masimo's effective working capital management and suggests that the company is effectively leveraging its resources to drive sales and support its business operations.