Merit Medical Systems Inc (MMSI)

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	1,346,822	1,311,388	1,282,089	1,260,472	1,241,203	1,213,421	1,188,414	1,165,681	1,144,662	1,131,114	1,111,439	1,096,568	1,069,451	1,049,645	1,025,702	962,507	955,554	955,472	953,411	990,405
Total current assets	US$ in thousands	923,774	1,078,320	1,162,550	1,105,280	1,108,470	585,318	594,907	557,217	529,084	499,863	492,631	478,092	482,212	463,442	449,782	438,488	429,707	434,626	445,945	462,508
Total current liabilities	US$ in thousands	216,402	201,079	186,215	183,344	203,564	187,133	190,003	215,952	220,645	213,035	195,590	203,831	236,280	213,475	210,604	207,678	185,004	186,047	174,224	165,291
Working capital turnover		1.90	1.49	1.31	1.37	1.37	3.05	2.94	3.42	3.71	3.94	3.74	4.00	4.35	4.20	4.29	4.17	3.90	3.84	3.51	3.33

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,346,822K ÷ ($923,774K – $216,402K)
= 1.90

The working capital turnover ratio of Merit Medical Systems Inc has shown fluctuation over the years based on the provided data. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

From March 31, 2020, to March 31, 2021, the working capital turnover ratio consistently increased from 3.33 to 4.17, indicating improved efficiency in utilizing working capital to generate sales. This trend continued until December 31, 2021, where the ratio peaked at 4.35, showing strong performance in this aspect.

However, from March 31, 2022, to December 31, 2024, the working capital turnover ratio experienced a declining trend, dropping to 1.90 by December 31, 2024. This decline suggests a potential inefficiency in managing working capital to support sales activities during this period.

It is important for Merit Medical Systems Inc to closely monitor and manage its working capital turnover ratio to ensure optimal utilization of resources and maintain operational efficiency in the future.