Merit Medical Systems Inc (MMSI)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,354,690 | 1,236,650 | 1,143,170 | 1,068,790 | 952,099 |
| Total current assets | US$ in thousands | 923,774 | 1,108,470 | 529,084 | 482,212 | 429,707 |
| Total current liabilities | US$ in thousands | 216,402 | 203,564 | 220,645 | 236,280 | 185,004 |
| Working capital turnover | 1.92 | 1.37 | 3.71 | 4.35 | 3.89 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,354,690K ÷ ($923,774K – $216,402K)
= 1.92
The working capital turnover of Merit Medical Systems Inc has shown some fluctuations over the years based on the provided data. In 2020, the working capital turnover was 3.89, indicating that the company generated $3.89 of revenue for every dollar of working capital invested.
The ratio increased in 2021 to 4.35, suggesting improved efficiency in utilizing working capital to generate sales. However, there was a decline in 2022 to 3.71, potentially indicating a decrease in sales relative to working capital investment.
The trend took a significant downturn in 2023 with a working capital turnover of 1.37, signaling a potential inefficiency in utilizing working capital to generate revenue. In 2024, there was a slight improvement to 1.92 but still below the levels seen in earlier years.
Overall, the working capital turnover ratio for Merit Medical Systems Inc has shown variability, with periods of both improvement and decline. It is essential for the company to closely monitor and manage its working capital efficiency to ensure optimal utilization of resources and sustainable growth.
Peer comparison
Dec 31, 2024