Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Intuitive Surgical Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
An analysis of short-term operating activity ratios reveals several trends over the observed period. Generally, a decreasing trend is apparent in inventory and receivables turnover, while payables turnover exhibits more fluctuation. Working capital turnover shows an initial decline followed by a recent increase. Associated processing and conversion cycles demonstrate corresponding shifts.
- Inventory Management
- Inventory turnover consistently decreased from 2.82 to 1.86, before a slight increase to 1.86 in the final period. This indicates a lengthening of the time it takes to sell inventory. The average inventory processing period corroborates this, increasing from 130 days to 196 days over the period, suggesting potential issues with inventory management or slowing sales. A slight decrease to 196 days in the final period is observed.
- Receivables Management
- Receivables turnover generally declined from 6.52 to 6.59, with some fluctuation. The average receivable collection period remained relatively stable, fluctuating between 48 and 58 days. While generally consistent, the slight decrease in turnover coupled with a stable collection period suggests a potential slowing in the rate of invoice payments or a change in sales terms.
- Payables Management
- Payables turnover exhibited more volatility than the other ratios, ranging from 11.10 to 14.36. The average payables payment period increased from 25 days to 35 days, then decreased to 27 days in the final period. This suggests a shifting strategy in managing payments to suppliers, potentially influenced by cash flow considerations or supplier negotiations.
- Working Capital Efficiency
- Working capital turnover decreased from 1.26 to a low of 0.95, then increased to 1.29. This indicates an initial decline in the efficiency with which working capital is used to generate sales, followed by a recent improvement. The fluctuations likely reflect changes in the levels of current assets and current liabilities relative to sales.
- Operating and Cash Cycles
- The operating cycle lengthened from 186 days to 251 days, reflecting the combined effects of slower inventory turnover and relatively stable receivable collection. The cash conversion cycle followed a similar pattern, increasing from 161 days to 224 days, indicating a longer time period between paying for inventory and collecting cash from sales. A slight decrease in both cycles is observed in the final period.
Overall, the trends suggest a potential slowdown in the company’s operating cycle, with inventory management appearing to be a key area of concern. Recent periods show some signs of stabilization or slight improvement in certain metrics, but continued monitoring is warranted.
Turnover Ratios
Average No. Days
Inventory Turnover
Intuitive Surgical Inc., inventory turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cost of revenue | 961,900) | 842,700) | 822,100) | 795,700) | 771,300) | 664,200) | 637,200) | 645,200) | 650,900) | 576,500) | 584,000) | 583,200) | 544,100) | 505,300) | 498,800) | 478,000) | |||||
| Inventory | 1,840,000) | 1,781,900) | 1,667,000) | 1,553,600) | 1,487,200) | 1,481,700) | 1,383,900) | 1,299,300) | 1,220,600) | 1,147,500) | 1,005,200) | 946,600) | 893,200) | 837,100) | 724,000) | 653,000) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Inventory turnover1 | 1.86 | 1.81 | 1.83 | 1.85 | 1.83 | 1.75 | 1.81 | 1.89 | 1.96 | 1.99 | 2.21 | 2.25 | 2.27 | 2.36 | 2.62 | 2.82 | |||||
| Benchmarks | |||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | — | 2.88 | 2.73 | 2.82 | 3.02 | 2.69 | 2.67 | 2.65 | 2.74 | 2.71 | 2.62 | 2.77 | 3.10 | 3.37 | 3.24 | 3.36 | |||||
| Medtronic PLC | 2.12 | 2.06 | 2.11 | 2.10 | 2.15 | 1.95 | 1.92 | 1.91 | 2.03 | 1.92 | 2.00 | 2.09 | 2.20 | 2.26 | 2.38 | 2.47 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Inventory turnover
= (Cost of revenueQ4 2025
+ Cost of revenueQ3 2025
+ Cost of revenueQ2 2025
+ Cost of revenueQ1 2025)
÷ Inventory
= (961,900 + 842,700 + 822,100 + 795,700)
÷ 1,840,000 = 1.86
2 Click competitor name to see calculations.
Inventory turnover exhibited a consistent, albeit gradual, decline over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio stood at 2.82, but progressively decreased to 1.86 by the end of the period. While fluctuations occurred, the overall trajectory indicates a lengthening of the inventory conversion cycle.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, inventory turnover decreased from 2.82 to 2.27. This initial decline suggests a slowing in the rate at which inventory was sold and replenished during this timeframe. The cost of revenue increased steadily, while inventory levels also rose, contributing to the lower turnover.
- Continued Downward Trend (Jan 1, 2023 – Sep 30, 2024)
- The downward trend continued through September 30, 2024, with the ratio reaching 1.75. This period saw continued increases in both cost of revenue and inventory, with inventory growing at a faster rate than cost of revenue. This suggests a potential build-up of inventory relative to sales.
- Stabilization and Slight Increase (Oct 1, 2024 – Dec 31, 2025)
- From December 31, 2024, to December 31, 2025, the ratio experienced a slight stabilization, increasing from 1.83 to 1.86. While still lower than the initial value in March 2022, this suggests a potential slowing of the inventory build-up. Cost of revenue increased significantly in this period, while inventory increases were more moderate.
- Inventory and Cost of Revenue Relationship
- A consistent positive correlation exists between cost of revenue and inventory levels throughout the period. As cost of revenue increased, inventory levels generally followed suit. However, the rate of increase in inventory often exceeded that of cost of revenue, particularly during the period of declining inventory turnover, indicating a potential inefficiency in inventory management.
The observed decline in inventory turnover warrants further investigation. Potential contributing factors could include changes in product mix, increased competition, or inefficiencies in supply chain management. The slight stabilization towards the end of the period may indicate corrective actions are taking effect, but continued monitoring is recommended.
Receivables Turnover
Intuitive Surgical Inc., receivables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Revenue | 2,866,200) | 2,505,100) | 2,440,000) | 2,253,400) | 2,413,500) | 2,038,100) | 2,009,900) | 1,890,600) | 1,928,300) | 1,743,700) | 1,755,900) | 1,696,200) | 1,655,000) | 1,557,400) | 1,522,100) | 1,487,700) | |||||
| Accounts receivable, net | 1,527,300) | 1,259,700) | 1,269,200) | 1,221,500) | 1,225,400) | 1,153,000) | 1,109,100) | 1,127,900) | 1,130,200) | 962,700) | 904,200) | 925,300) | 942,100) | 849,600) | 838,500) | 906,100) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Receivables turnover1 | 6.59 | 7.63 | 7.21 | 7.13 | 6.82 | 6.82 | 6.83 | 6.49 | 6.30 | 7.12 | 7.37 | 6.95 | 6.60 | 7.20 | 7.11 | 6.52 | |||||
| Benchmarks | |||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | — | 5.39 | 5.41 | 5.78 | 6.06 | 5.85 | 5.94 | 6.11 | 6.11 | 6.15 | 6.52 | 6.89 | 7.02 | 7.03 | 6.33 | 6.20 | |||||
| Elevance Health Inc. | — | 16.80 | 14.83 | 14.42 | 18.00 | 19.84 | 17.60 | 15.98 | 18.08 | 17.93 | 18.82 | 16.53 | 18.81 | 19.51 | 18.80 | 16.67 | |||||
| Medtronic PLC | 5.15 | 5.43 | 5.27 | 5.42 | 5.28 | 5.42 | 5.39 | 5.44 | 5.21 | 5.23 | 5.48 | 5.85 | 5.71 | 5.84 | 5.79 | 5.82 | |||||
| UnitedHealth Group Inc. | — | 18.98 | 17.29 | 15.03 | 17.66 | 19.43 | 16.49 | 13.80 | 17.27 | 17.23 | 19.23 | 14.88 | 18.22 | 18.37 | 16.27 | 15.65 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Receivables turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Accounts receivable, net
= (2,866,200 + 2,505,100 + 2,440,000 + 2,253,400)
÷ 1,527,300 = 6.59
2 Click competitor name to see calculations.
The receivables turnover ratio exhibits fluctuations over the observed period, generally remaining within a relatively narrow range. An initial increase is noted from March 31, 2022, to June 30, 2022, followed by a slight increase through September 30, 2022. A subsequent decline is then observed through December 31, 2022, before stabilizing and showing modest increases in the first half of 2023. The ratio then experiences a more pronounced decrease in the latter half of 2023, followed by a recovery in the first half of 2024. A further increase is seen through September 30, 2025, before declining again at the end of the period.
- Overall Trend
- The receivables turnover ratio demonstrates a cyclical pattern. While generally consistent, it is not consistently trending upwards or downwards. The ratio peaked in June 2023 at 7.37 and reached its lowest point in December 2025 at 6.59.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to June 2023, the ratio increased from 6.52 to 7.37, indicating a more efficient collection of receivables relative to revenue. However, this efficiency decreased in the latter half of 2023, falling to 6.30 by December. This suggests a potential slowdown in collections or a change in credit terms extended to customers.
- Recent Performance (2024-2025)
- The ratio showed some recovery in 2024, reaching 6.83 by June. This upward trend continued into September 2025, reaching 7.63, before decreasing to 6.59 in December 2025. The decline in the final quarter of 2025 warrants further investigation to determine if it represents a temporary anomaly or the beginning of a new downward trend.
- Relationship to Revenue
- While the receivables turnover ratio fluctuates, it generally moves in a manner consistent with revenue changes. Periods of revenue growth are often accompanied by increases in the ratio, and vice versa. However, the relationship is not always direct, suggesting other factors, such as changes in payment terms or collection efforts, also influence the ratio.
In conclusion, the receivables turnover ratio indicates a generally stable, though fluctuating, collection efficiency. The recent decline at the end of the observed period should be monitored to assess its potential impact on cash flow and working capital management.
Payables Turnover
Intuitive Surgical Inc., payables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cost of revenue | 961,900) | 842,700) | 822,100) | 795,700) | 771,300) | 664,200) | 637,200) | 645,200) | 650,900) | 576,500) | 584,000) | 583,200) | 544,100) | 505,300) | 498,800) | 478,000) | |||||
| Accounts payable | 255,100) | 291,200) | 266,800) | 276,200) | 193,400) | 218,700) | 194,400) | 194,400) | 188,700) | 196,200) | 199,700) | 164,100) | 147,000) | 164,200) | 149,700) | 128,100) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Payables turnover1 | 13.42 | 11.10 | 11.44 | 10.39 | 14.05 | 11.88 | 12.91 | 12.64 | 12.69 | 11.66 | 11.10 | 12.99 | 13.78 | 12.01 | 12.68 | 14.36 | |||||
| Benchmarks | |||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | — | 4.69 | 4.40 | 4.44 | 4.46 | 4.54 | 4.42 | 4.33 | 4.19 | 4.55 | 4.28 | 4.44 | 4.15 | 4.67 | 4.25 | 4.02 | |||||
| Elevance Health Inc. | — | 8.38 | 8.07 | 7.87 | 8.10 | 8.17 | 8.09 | 7.54 | 7.72 | 7.61 | 7.54 | 7.57 | 7.47 | 7.48 | 7.35 | 7.28 | |||||
| Medtronic PLC | 4.75 | 5.04 | 4.85 | 4.95 | 4.65 | 5.60 | 5.09 | 4.84 | 4.03 | 4.68 | 4.60 | 4.62 | 4.46 | 5.14 | 5.41 | 5.67 | |||||
| UnitedHealth Group Inc. | — | 7.44 | 7.42 | 7.32 | 7.72 | 7.64 | 7.77 | 7.28 | 7.47 | 7.11 | 7.08 | 6.86 | 7.26 | 7.07 | 6.90 | 6.78 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Payables turnover
= (Cost of revenueQ4 2025
+ Cost of revenueQ3 2025
+ Cost of revenueQ2 2025
+ Cost of revenueQ1 2025)
÷ Accounts payable
= (961,900 + 842,700 + 822,100 + 795,700)
÷ 255,100 = 13.42
2 Click competitor name to see calculations.
The accounts payable turnover ratio exhibits fluctuations over the observed period, generally ranging between 10 and 14. A review of the quarterly figures reveals periods of relative stability interspersed with noticeable shifts. The ratio initially declines from 14.36 in March 2022 to 12.01 in September 2022, before recovering to 13.78 by December 2022.
- Overall Trend
- From March 2022 through December 2023, the ratio demonstrates a generally stable pattern, oscillating within a relatively narrow band. However, a more pronounced decrease is observed in March 2024, falling to 10.39, representing the lowest point in the analyzed timeframe. This is followed by a recovery through December 2025, reaching 13.42.
- Short-Term Fluctuations
- A distinct decrease in payables turnover is evident from June 2023 (11.10) to March 2024 (10.39). This suggests a potential lengthening of the time taken to settle outstanding obligations to suppliers during that period. Conversely, the period from September 2024 (11.88) to December 2025 (13.42) shows an increasing trend, indicating a faster rate of payment to suppliers.
The cost of revenue generally increased throughout the period, while accounts payable also showed an overall upward trend, though with more variability. The observed fluctuations in the payables turnover ratio do not appear directly correlated with the increasing cost of revenue, suggesting factors beyond simply increased purchasing activity are influencing payment terms or supplier relationships.
- Recent Performance
- The most recent quarter, ending December 2025, shows a payables turnover ratio of 13.42. This represents an improvement from the low of 10.39 observed in March 2024, but remains below the levels seen in the earlier part of the analyzed period. This suggests a potential return towards more typical payment practices, but further monitoring is warranted.
In summary, the payables turnover ratio demonstrates a dynamic pattern, influenced by factors beyond the simple volume of purchases. The recent trend indicates a potential improvement in payment efficiency, but ongoing observation is necessary to confirm a sustained shift.
Working Capital Turnover
Intuitive Surgical Inc., working capital turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Current assets | 9,779,500) | 8,525,300) | 8,745,900) | 7,657,800) | 7,111,000) | 7,215,600) | 7,654,300) | 7,632,700) | 7,888,000) | 8,902,900) | 8,031,800) | 6,877,000) | 6,253,000) | 6,293,100) | 6,292,500) | 5,803,200) | |||||
| Less: Current liabilities | 2,006,200) | 1,803,200) | 1,692,600) | 1,538,100) | 1,745,300) | 1,676,800) | 1,487,500) | 1,375,100) | 1,658,700) | 1,676,400) | 1,538,400) | 1,307,400) | 1,422,100) | 1,233,400) | 1,175,000) | 1,112,200) | |||||
| Working capital | 7,773,300) | 6,722,100) | 7,053,300) | 6,119,700) | 5,365,700) | 5,538,800) | 6,166,800) | 6,257,600) | 6,229,300) | 7,226,500) | 6,493,400) | 5,569,600) | 4,830,900) | 5,059,700) | 5,117,500) | 4,691,000) | |||||
| Revenue | 2,866,200) | 2,505,100) | 2,440,000) | 2,253,400) | 2,413,500) | 2,038,100) | 2,009,900) | 1,890,600) | 1,928,300) | 1,743,700) | 1,755,900) | 1,696,200) | 1,655,000) | 1,557,400) | 1,522,100) | 1,487,700) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Working capital turnover1 | 1.29 | 1.43 | 1.30 | 1.42 | 1.56 | 1.42 | 1.23 | 1.17 | 1.14 | 0.95 | 1.03 | 1.15 | 1.29 | 1.21 | 1.17 | 1.26 | |||||
| Benchmarks | |||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | — | 4.27 | 3.91 | 4.17 | 4.42 | 4.63 | 4.35 | 4.83 | 4.54 | 4.15 | 4.39 | 4.21 | 4.48 | 3.92 | 3.63 | 4.13 | |||||
| Elevance Health Inc. | — | 7.00 | 7.96 | 8.11 | 7.85 | 6.87 | 6.92 | 8.59 | 7.83 | 7.92 | 7.69 | 7.60 | 8.37 | 9.11 | 8.85 | 8.65 | |||||
| Medtronic PLC | 3.07 | 3.11 | 3.22 | 2.79 | 2.90 | 2.54 | 2.57 | 2.46 | 2.47 | 2.81 | 2.82 | 3.84 | 2.97 | 2.21 | 2.13 | 2.15 | |||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Working capital turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Working capital
= (2,866,200 + 2,505,100 + 2,440,000 + 2,253,400)
÷ 7,773,300 = 1.29
2 Click competitor name to see calculations.
The working capital turnover ratio for the analyzed period demonstrates fluctuations, generally trending upward in the latter half of the observed timeframe. Initial values indicate a moderate level of efficiency in utilizing working capital to generate revenue, followed by a period of decline and subsequent improvement.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The working capital turnover ratio begins at 1.26 and experiences a decrease to 1.17 before recovering to 1.29. This suggests initial efficient use of working capital, a slight dip in efficiency, and then a return to a similar level of efficiency as the starting point. The fluctuations during this period are relatively minor.
- Subsequent Decline (Mar 31, 2023 – Sep 30, 2023)
- A noticeable downward trend is observed from 1.15 to 0.95. This indicates a decreasing efficiency in converting working capital into revenue during this period. The ratio reaches its lowest point at 0.95, suggesting a potential build-up of working capital relative to sales.
- Recovery and Peak (Dec 31, 2023 – Sep 30, 2024)
- The ratio demonstrates a strong recovery, increasing from 1.14 to a peak of 1.56. This signifies a substantial improvement in the efficiency of working capital utilization. The increase suggests better management of current assets and liabilities in relation to revenue generation.
- Recent Period (Mar 31, 2025 – Dec 31, 2025)
- Following the peak, the ratio experiences a slight decline to 1.29. While still representing a healthy level of turnover, this decrease warrants monitoring to determine if it signals a new trend or is a temporary fluctuation. The ratio remains above the levels observed in the initial period.
Overall, the working capital turnover ratio exhibits cyclical behavior. The company experienced a period of declining efficiency, followed by a significant recovery and a recent slight decrease. Continued monitoring of this ratio is recommended to assess the sustainability of the improved performance and to identify any potential issues with working capital management.
Average Inventory Processing Period
Intuitive Surgical Inc., average inventory processing period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Inventory turnover | 1.86 | 1.81 | 1.83 | 1.85 | 1.83 | 1.75 | 1.81 | 1.89 | 1.96 | 1.99 | 2.21 | 2.25 | 2.27 | 2.36 | 2.62 | 2.82 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average inventory processing period1 | 196 | 201 | 199 | 198 | 200 | 208 | 201 | 193 | 186 | 183 | 166 | 162 | 161 | 155 | 139 | 130 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | — | 127 | 134 | 130 | 121 | 136 | 136 | 138 | 133 | 135 | 139 | 132 | 118 | 108 | 113 | 109 | |||||
| Medtronic PLC | 172 | 178 | 173 | 174 | 170 | 187 | 190 | 191 | 180 | 190 | 183 | 174 | 166 | 161 | 153 | 148 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.86 = 196
2 Click competitor name to see calculations.
The average inventory processing period exhibited a consistent upward trend over the observed period, spanning from March 31, 2022, to December 31, 2025. This indicates a lengthening in the time required to convert inventory into sales.
- Overall Trend
- From 130 days in March 2022, the average inventory processing period increased to 196 days by December 2025. The increase was not linear, with periods of more rapid growth followed by relative stabilization.
- Phases of Change
- The period between March 2022 and June 2023 saw a moderate increase, rising from 130 days to 166 days. A more pronounced increase occurred between September 2023 and March 2024, with the period climbing from 183 days to 193 days. The final period, from March 2024 to December 2025, showed a slight decrease, fluctuating between 198 and 196 days.
- Inventory Turnover Relationship
- The observed increase in the average inventory processing period aligns with the concurrent decrease in inventory turnover. Inventory turnover declined from 2.82 in March 2022 to 1.86 in December 2025. This inverse relationship is expected; as inventory turnover decreases, the time to sell inventory naturally increases.
The consistent lengthening of the average inventory processing period, coupled with the declining inventory turnover, suggests a potential slowdown in inventory velocity. Further investigation may be warranted to understand the underlying causes, such as changes in product mix, supply chain disruptions, or shifts in demand patterns.
Average Receivable Collection Period
Intuitive Surgical Inc., average receivable collection period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Receivables turnover | 6.59 | 7.63 | 7.21 | 7.13 | 6.82 | 6.82 | 6.83 | 6.49 | 6.30 | 7.12 | 7.37 | 6.95 | 6.60 | 7.20 | 7.11 | 6.52 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average receivable collection period1 | 55 | 48 | 51 | 51 | 54 | 53 | 53 | 56 | 58 | 51 | 50 | 53 | 55 | 51 | 51 | 56 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | — | 68 | 67 | 63 | 60 | 62 | 61 | 60 | 60 | 59 | 56 | 53 | 52 | 52 | 58 | 59 | |||||
| Elevance Health Inc. | — | 22 | 25 | 25 | 20 | 18 | 21 | 23 | 20 | 20 | 19 | 22 | 19 | 19 | 19 | 22 | |||||
| Medtronic PLC | 71 | 67 | 69 | 67 | 69 | 67 | 68 | 67 | 70 | 70 | 67 | 62 | 64 | 63 | 63 | 63 | |||||
| UnitedHealth Group Inc. | — | 19 | 21 | 24 | 21 | 19 | 22 | 26 | 21 | 21 | 19 | 25 | 20 | 20 | 22 | 23 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.59 = 55
2 Click competitor name to see calculations.
The average receivable collection period demonstrates a generally stable pattern over the observed period, with fluctuations primarily occurring within a narrow range. An initial decrease is noted, followed by periods of relative consistency and then some variability.
- Overall Trend
- The average collection period generally fluctuates between 48 and 58 days. While there isn't a strong, sustained upward or downward trend, the period exhibits some cyclical behavior.
- Initial Phase (Mar 31, 2022 - Dec 31, 2022)
- The period begins at 56 days, decreasing to a low of 51 days by June 30, 2022, and remaining at that level through September 30, 2022. A slight increase to 55 days is then observed by December 31, 2022.
- Stabilization and Fluctuation (Mar 31, 2023 - Dec 31, 2024)
- From March 31, 2023, to December 31, 2024, the collection period remains relatively stable, oscillating between 50 and 56 days. There is no clear directional movement during this timeframe.
- Recent Period (Mar 31, 2025 - Dec 31, 2025)
- A decrease to 48 days is seen by September 30, 2025, representing the lowest point in the observed period. This is followed by an increase to 55 days by December 31, 2025.
- Potential Observations
- The consistency in the collection period suggests effective credit and collection policies. The recent dip to 48 days may warrant further investigation to determine if it represents a sustainable improvement or a temporary anomaly. The final increase to 55 days should also be monitored in subsequent periods.
In summary, the average receivable collection period demonstrates a controlled and predictable pattern, indicating generally sound management of accounts receivable. Continued monitoring is recommended to identify and address any deviations from the established range.
Operating Cycle
Intuitive Surgical Inc., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 196 | 201 | 199 | 198 | 200 | 208 | 201 | 193 | 186 | 183 | 166 | 162 | 161 | 155 | 139 | 130 | |||||
| Average receivable collection period | 55 | 48 | 51 | 51 | 54 | 53 | 53 | 56 | 58 | 51 | 50 | 53 | 55 | 51 | 51 | 56 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Operating cycle1 | 251 | 249 | 250 | 249 | 254 | 261 | 254 | 249 | 244 | 234 | 216 | 215 | 216 | 206 | 190 | 186 | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | — | 195 | 201 | 193 | 181 | 198 | 197 | 198 | 193 | 194 | 195 | 185 | 170 | 160 | 171 | 168 | |||||
| Medtronic PLC | 243 | 245 | 242 | 241 | 239 | 254 | 258 | 258 | 250 | 260 | 250 | 236 | 230 | 224 | 216 | 211 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 196 + 55 = 251
2 Click competitor name to see calculations.
The operating cycle, along with its component parts, demonstrates a consistent lengthening trend over the observed period. The average inventory processing period and average receivable collection period both contribute to this overall increase.
- Average Inventory Processing Period
- The average inventory processing period exhibits a clear upward trend, increasing from 130 days in March 2022 to 196 days in December 2025. While fluctuations exist, the period generally increased each quarter, with a more pronounced rise beginning in the second half of 2023. The period peaked at 208 days in September 2024 before decreasing slightly in subsequent quarters, but remained significantly higher than the initial value.
- Average Receivable Collection Period
- The average receivable collection period shows less dramatic change than the inventory processing period, but still trends upward overall. Starting at 56 days in March 2022, it fluctuates between 50 and 58 days for most of the period. A noticeable increase is observed from September 2024 to December 2025, rising from 53 days to 55 days. The period remained relatively stable between 51 and 53 days for much of 2022 and 2023.
- Operating Cycle
- The operating cycle consistently increased throughout the analyzed timeframe, moving from 186 days in March 2022 to 251 days in December 2025. This increase mirrors the trends observed in both the inventory processing and receivable collection periods. The most substantial increases occurred between 2023 and 2025, indicating a growing time required to convert investments in inventory and receivables into cash. The operating cycle peaked at 261 days in September 2024, before decreasing slightly in the final quarters.
The lengthening of the operating cycle suggests a potential slowdown in the efficiency of working capital management. Further investigation into the underlying causes of these trends, such as changes in inventory turnover, credit policies, or collection efforts, would be beneficial.
Average Payables Payment Period
Intuitive Surgical Inc., average payables payment period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Payables turnover | 13.42 | 11.10 | 11.44 | 10.39 | 14.05 | 11.88 | 12.91 | 12.64 | 12.69 | 11.66 | 11.10 | 12.99 | 13.78 | 12.01 | 12.68 | 14.36 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average payables payment period1 | 27 | 33 | 32 | 35 | 26 | 31 | 28 | 29 | 29 | 31 | 33 | 28 | 26 | 30 | 29 | 25 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | — | 78 | 83 | 82 | 82 | 80 | 83 | 84 | 87 | 80 | 85 | 82 | 88 | 78 | 86 | 91 | |||||
| Elevance Health Inc. | — | 44 | 45 | 46 | 45 | 45 | 45 | 48 | 47 | 48 | 48 | 48 | 49 | 49 | 50 | 50 | |||||
| Medtronic PLC | 77 | 72 | 75 | 74 | 78 | 65 | 72 | 75 | 91 | 78 | 79 | 79 | 82 | 71 | 67 | 64 | |||||
| UnitedHealth Group Inc. | — | 49 | 49 | 50 | 47 | 48 | 47 | 50 | 49 | 51 | 52 | 53 | 50 | 52 | 53 | 54 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 13.42 = 27
2 Click competitor name to see calculations.
The average payables payment period exhibited fluctuations over the observed period, ranging from a low of 25 days to a high of 35 days. An initial increase is noted from March 2022 to June 2022, followed by a period of relative stability before another increase in the latter half of 2023. A subsequent decrease is then observed into early 2024, with a final increase in the most recent periods.
- Overall Trend
- The average payables payment period generally trended upwards between March 2022 and March 2023, increasing from 25 days to 28 days. A more pronounced increase occurred between June 2023 and March 2025, reaching a peak of 35 days before decreasing to 27 days by December 2025. This suggests a potential lengthening of the time taken to settle obligations to suppliers, followed by a recent effort to reduce that period.
- Short-Term Fluctuations
- A slight increase in the average payables payment period occurred from 25 days in March 2022 to 29 days in June 2022. This was followed by a further increase to 30 days in September 2022 before decreasing to 26 days in December 2022. This initial period demonstrates some volatility. A similar pattern of increase and decrease is observed in 2024, with a rise to 31 days in September 2024 and a subsequent decline to 27 days in December 2025.
- Recent Performance
- The most recent data indicates a decrease in the average payables payment period. After peaking at 35 days in March 2025, the period decreased to 32 days in June 2025, remained at 33 days in September 2025, and further decreased to 27 days in December 2025. This suggests a recent focus on improving payment terms or accelerating payments to suppliers.
- Relationship to Payables Turnover
- The average payables payment period is inversely related to the payables turnover ratio. As the payables turnover ratio decreases, the average payables payment period increases, and vice versa. This relationship is consistent throughout the observed period, confirming the expected inverse correlation between these two metrics.
Cash Conversion Cycle
Intuitive Surgical Inc., cash conversion cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 196 | 201 | 199 | 198 | 200 | 208 | 201 | 193 | 186 | 183 | 166 | 162 | 161 | 155 | 139 | 130 | |||||
| Average receivable collection period | 55 | 48 | 51 | 51 | 54 | 53 | 53 | 56 | 58 | 51 | 50 | 53 | 55 | 51 | 51 | 56 | |||||
| Average payables payment period | 27 | 33 | 32 | 35 | 26 | 31 | 28 | 29 | 29 | 31 | 33 | 28 | 26 | 30 | 29 | 25 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Cash conversion cycle1 | 224 | 216 | 218 | 214 | 228 | 230 | 226 | 220 | 215 | 203 | 183 | 187 | 190 | 176 | 161 | 161 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||
| Abbott Laboratories | — | 117 | 118 | 111 | 99 | 118 | 114 | 114 | 106 | 114 | 110 | 103 | 82 | 82 | 85 | 77 | |||||
| Medtronic PLC | 166 | 173 | 167 | 167 | 161 | 189 | 186 | 183 | 159 | 182 | 171 | 157 | 148 | 153 | 149 | 147 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 196 + 55 – 27 = 224
2 Click competitor name to see calculations.
The short-term operating activity of the company, as measured by its cash conversion cycle and component ratios, exhibits several notable trends over the observed period. Generally, the cash conversion cycle has demonstrated an increasing trend, although with some fluctuation. A closer examination of the individual components reveals the drivers behind this overall pattern.
- Average Inventory Processing Period
- The average inventory processing period consistently increased from 130 days in March 2022 to 193 days in March 2024. While there was a slight decrease to 196 days in December 2024, it rose again to 199 days in June 2025 and stabilized at 201 days in September 2025, before decreasing slightly to 196 days in December 2025. This sustained increase suggests a lengthening of the time required to convert raw materials into finished goods and ultimately sell them. This could be due to factors such as increased inventory levels, slower production processes, or declining sales velocity.
- Average Receivable Collection Period
- The average receivable collection period remained relatively stable between 51 and 58 days for most of the period. A slight downward trend was observed from 56 days in March 2022 to a low of 48 days in September 2025. However, it increased to 55 days in December 2025. This indicates generally consistent efficiency in collecting payments from customers, with a recent slight increase potentially warranting further investigation.
- Average Payables Payment Period
- The average payables payment period showed more variability. It increased from 25 days in March 2022 to 33 days in June 2023, then decreased to 26 days in December 2022. It then increased again, peaking at 35 days in March 2025, before decreasing to 27 days in December 2025. This suggests fluctuating negotiation power with suppliers or changes in payment terms. The increase in the payables period in early 2025 could indicate a deliberate strategy to preserve cash, or potentially, a strain on supplier relationships.
- Cash Conversion Cycle
- The cash conversion cycle increased from 161 days in both March and June 2022 to 224 days in December 2025. The most significant increases occurred between September 2022 and December 2023, and again between March and September 2024. The primary driver of this increase appears to be the lengthening inventory processing period, although fluctuations in the payables period also contributed. A longer cash conversion cycle generally implies that the company is tying up more capital in its operations for extended periods, potentially reducing liquidity and return on assets. The slight decrease in the cycle in December 2025 may indicate early signs of improvement, but the overall trend remains upward.
In summary, the company’s operating cycle has lengthened over the analyzed period, primarily due to an increasing inventory processing period. While the receivable collection period has remained relatively stable, and the payables period has fluctuated, the overall impact has been a greater time required to convert investments in inventory and receivables into cash.