Zimmer Biomet Holdings Inc (ZBH)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,434,500 | 7,171,400 | 6,780,400 | 7,459,000 | 6,789,700 |
| Total current assets | US$ in thousands | 4,671,500 | 4,609,500 | 4,427,300 | 4,885,000 | 5,083,300 |
| Total current liabilities | US$ in thousands | 2,450,900 | 2,857,400 | 2,358,200 | 3,467,900 | 2,556,900 |
| Working capital turnover | 3.35 | 4.09 | 3.28 | 5.26 | 2.69 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,434,500K ÷ ($4,671,500K – $2,450,900K)
= 3.35
The working capital turnover of Zimmer Biomet Holdings Inc has shown fluctuations over the years. In 2020, the working capital turnover was 2.69, indicating that the company generated $2.69 in revenue for every dollar of working capital invested. This ratio increased significantly to 5.26 in 2021, suggesting a more efficient utilization of working capital to generate revenue.
However, in 2022, there was a decrease in the working capital turnover to 3.28, indicating a slight dip in efficiency compared to the previous year. Subsequently, in 2023, the ratio improved to 4.09, suggesting a better utilization of working capital to generate revenue once again.
In 2024, the working capital turnover decreased to 3.35, showing a slight decline in efficiency compared to the previous year. Overall, although there were fluctuations in the working capital turnover ratio over the years, Zimmer Biomet Holdings Inc generally demonstrated an ability to efficiently use its working capital to generate revenue, with some variations in efficiency levels.
Peer comparison
Dec 31, 2024