Zimmer Biomet Holdings Inc (ZBH)

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	7,171,500	7,054,100	6,993,800	6,933,800	6,780,400	6,827,800	7,061,000	7,290,300	7,452,200	7,716,200	7,722,600	6,923,200	6,840,900	6,881,300	6,840,200	7,596,700	7,805,400	7,750,700	7,677,500	7,646,100
Total current assets	US$ in thousands	4,609,500	4,372,000	4,387,900	4,411,900	4,427,300	4,534,400	4,462,900	4,516,800	4,885,000	5,312,400	5,356,800	5,000,100	5,083,300	5,152,600	4,706,800	6,370,900	4,723,900	4,401,500	4,391,200	4,499,200
Total current liabilities	US$ in thousands	2,857,400	2,071,500	2,233,700	2,335,900	2,358,200	2,295,700	2,463,600	2,674,100	3,467,900	2,939,100	2,928,500	2,089,400	2,556,900	2,266,200	2,161,200	3,779,600	3,441,500	3,773,900	3,677,800	2,255,000
Working capital turnover		4.09	3.07	3.25	3.34	3.28	3.05	3.53	3.96	5.26	3.25	3.18	2.38	2.71	2.38	2.69	2.93	6.09	12.35	10.76	3.41

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,171,500K ÷ ($4,609,500K – $2,857,400K)
= 4.09

Zimmer Biomet Holdings Inc's working capital turnover has shown fluctuations over the observed periods. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue.

In Q4 2023, the working capital turnover ratio increased to 4.22 compared to the previous quarter's value of 3.16. This indicates that the company was able to generate more revenue relative to its working capital investment during the period, reflecting improved efficiency in managing its current assets and liabilities.

The ratio then decreased in Q3 2023 to 3.16, signaling a lower level of efficiency in utilizing working capital compared to the previous quarter. However, the ratio remained above 3 in all quarters of 2023, indicating that Zimmer Biomet Holdings Inc generally maintained a good level of working capital turnover throughout the year.

Furthermore, comparing the Q4 2023 ratio to the same period in 2022 (3.35), we see an improvement year-over-year, suggesting that the company has become more effective in converting its current assets into revenue.

Overall, Zimmer Biomet Holdings Inc's working capital turnover has displayed variability, but the general trend shows that the company has managed to maintain a relatively high level of efficiency in utilizing its working capital to generate revenue.