Masimo Corporation (MASI)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,047,100 | 2,130,300 | 2,204,300 | 2,322,800 | 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 | 937,837 | 913,459 | 895,031 | 877,000 |
| Total current assets | US$ in thousands | 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 | 996,062 | 934,216 | 864,043 | 850,297 |
| Total current liabilities | US$ in thousands | 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 | 172,219 | 150,008 | 136,074 | 121,157 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,047,100K ÷ ($1,231,900K – $563,800K)
= 3.06
Masimo Corporation's working capital turnover has shown fluctuating trends over the past few quarters. The working capital turnover ratio indicates the efficiency of a company in utilizing its working capital to generate sales revenue.
From the data provided, we can observe an overall increasing trend in the working capital turnover ratio from Dec 2019 to Jun 2023, peaking at 3.46 in Jun 2023. This indicates that Masimo has been more efficient in converting its working capital into sales during this period.
However, it is important to note that there were some fluctuations in the ratio during this period. For instance, there was a significant drop in the ratio in Mar 2022 to 1.28, followed by a gradual increase until Jun 2023.
The working capital turnover ratio improved significantly from Mar 2022 to Jun 2023, which suggests that the company has been managing its working capital more efficiently or experiencing an increase in sales relative to its working capital.
It is essential to monitor this ratio over time to assess Masimo Corporation's ongoing ability to efficiently utilize its working capital to generate sales revenue.
Peer comparison
Dec 31, 2023