Masimo Corporation (MASI)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	2,027,700	2,041,700	2,025,400	1,980,800	2,054,500	2,137,700	2,211,700	2,330,200	2,062,041	1,774,419	1,519,833	1,244,351	1,239,153	1,206,629	1,177,327	1,173,162	1,143,744	1,096,200	1,047,099	975,798
Total current assets	US$ in thousands	1,225,800	1,279,900	1,142,200	1,165,600	1,231,900	1,237,500	1,208,200	1,260,800	1,308,600	1,245,600	1,158,200	1,224,740	1,238,500	1,137,790	1,051,840	983,110	1,101,160	1,158,970	1,092,610	980,156
Total current liabilities	US$ in thousands	617,700	637,600	546,200	504,200	563,800	578,800	571,900	583,200	630,000	587,300	552,000	254,311	267,700	228,254	220,029	196,872	233,836	232,752	227,556	157,292
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,027,700K ÷ ($1,225,800K – $617,700K)
= 3.33

The working capital turnover, which measures how efficiently a company is using its working capital to generate revenue, has shown fluctuating trends for Masimo Corporation over the years.

From March 31, 2020, to June 30, 2022, the working capital turnover ratio steadily increased from 1.19 to 2.70, indicating that the company was becoming more effective in utilizing its working capital to generate sales. This significant improvement over this period suggests that Masimo was managing its current assets and liabilities more efficiently.

However, starting from June 30, 2022, the ratio experienced a slight decline, but it continued to remain above 2, indicating efficient working capital management.

Overall, Masimo Corporation has shown a generally positive trend in its working capital turnover, reflecting improved efficiency in utilizing its working capital to support the generation of revenue. Continued monitoring of this ratio is crucial to ensure sustained operational efficiency and financial health.