Analysis of Short-term (Operating) Activity Ratios
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)
Shockwave Medical Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Shockwave Medical Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Shockwave Medical Inc. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Shockwave Medical Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Shockwave Medical Inc. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Shockwave Medical Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Shockwave Medical Inc. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Shockwave Medical Inc. operating cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Shockwave Medical Inc. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Shockwave Medical Inc. cash conversion cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Inventory Turnover
Shockwave Medical Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenue | 95,388) | 64,996) | 41,438) | 20,991) | 17,159) | |
| Inventory | 107,587) | 75,112) | 42,978) | 29,859) | 12,074) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 0.89 | 0.87 | 0.96 | 0.70 | 1.42 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Abbott Laboratories | 2.74 | 3.10 | 3.59 | 2.99 | — | |
| CVS Health Corp. | 16.83 | 14.05 | 13.52 | 11.88 | — | |
| Intuitive Surgical Inc. | 1.96 | 2.27 | 2.98 | 2.49 | — | |
| Medtronic PLC | 2.03 | 2.20 | 2.43 | 2.23 | 2.44 | |
| Inventory Turnover, Sector | ||||||
| Health Care Equipment & Services | 22.52 | 20.37 | 20.15 | 17.40 | — | |
| Inventory Turnover, Industry | ||||||
| Health Care | 9.18 | 9.22 | 9.17 | 8.17 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Inventory turnover = Cost of revenue ÷ Inventory
= 95,388 ÷ 107,587 = 0.89
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Shockwave Medical Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Receivables Turnover
Shockwave Medical Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 730,230) | 489,733) | 237,146) | 67,789) | 42,927) | |
| Accounts receivable, net | 114,552) | 71,366) | 37,435) | 11,689) | 7,377) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.37 | 6.86 | 6.33 | 5.80 | 5.82 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 6.11 | 7.02 | 6.64 | 5.40 | — | |
| CVS Health Corp. | 10.12 | 11.79 | 11.91 | 12.32 | — | |
| Elevance Health Inc. | 18.08 | 18.81 | 20.66 | 19.72 | — | |
| Intuitive Surgical Inc. | 6.30 | 6.60 | 7.30 | 6.75 | — | |
| Medtronic PLC | 5.21 | 5.71 | 5.51 | 6.22 | 4.91 | |
| UnitedHealth Group Inc. | 17.27 | 18.22 | 20.07 | 19.86 | — | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 12.11 | 13.26 | 13.54 | 13.48 | — | |
| Receivables Turnover, Industry | ||||||
| Health Care | 8.15 | 8.84 | 8.65 | 8.64 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net
= 730,230 ÷ 114,552 = 6.37
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Shockwave Medical Inc. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Payables Turnover
Shockwave Medical Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of revenue | 95,388) | 64,996) | 41,438) | 20,991) | 17,159) | |
| Accounts payable | 8,868) | 6,721) | 3,520) | 1,466) | 2,790) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 10.76 | 9.67 | 11.77 | 14.32 | 6.15 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.19 | 4.15 | 4.21 | 3.80 | — | |
| CVS Health Corp. | 20.36 | 18.07 | 19.14 | 19.72 | — | |
| Elevance Health Inc. | 7.72 | 7.47 | 7.59 | 7.75 | — | |
| Intuitive Surgical Inc. | 12.69 | 13.78 | 14.45 | 18.35 | — | |
| Medtronic PLC | 4.03 | 4.46 | 4.98 | 4.72 | 4.69 | |
| UnitedHealth Group Inc. | 7.47 | 7.26 | 7.63 | 7.29 | — | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 9.93 | 9.42 | 9.80 | 9.78 | — | |
| Payables Turnover, Industry | ||||||
| Health Care | 7.96 | 7.50 | 7.61 | 7.48 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 95,388 ÷ 8,868 = 10.76
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Shockwave Medical Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
Working Capital Turnover
Shockwave Medical Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 1,225,260) | 459,263) | 285,902) | 246,300) | 216,697) | |
| Less: Current liabilities | 104,205) | 63,374) | 51,628) | 25,581) | 24,008) | |
| Working capital | 1,121,055) | 395,889) | 234,274) | 220,719) | 192,689) | |
| Revenue | 730,230) | 489,733) | 237,146) | 67,789) | 42,927) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 0.65 | 1.24 | 1.01 | 0.31 | 0.22 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.54 | 4.48 | 3.87 | 4.06 | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | 7.83 | 8.37 | 7.23 | 6.39 | — | |
| Intuitive Surgical Inc. | 1.14 | 1.29 | 1.22 | 0.77 | — | |
| Medtronic PLC | 2.47 | 2.97 | 2.15 | 2.48 | 2.26 | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 67.67 | 50.71 | 35.48 | 39.06 | — | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 16.59 | 15.34 | 11.93 | 11.78 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Working capital turnover = Revenue ÷ Working capital
= 730,230 ÷ 1,121,055 = 0.65
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Shockwave Medical Inc. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Inventory Processing Period
Shockwave Medical Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 0.89 | 0.87 | 0.96 | 0.70 | 1.42 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 412 | 422 | 379 | 519 | 257 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Abbott Laboratories | 133 | 118 | 102 | 122 | — | |
| CVS Health Corp. | 22 | 26 | 27 | 31 | — | |
| Intuitive Surgical Inc. | 186 | 161 | 122 | 147 | — | |
| Medtronic PLC | 180 | 166 | 150 | 164 | 150 | |
| Average Inventory Processing Period, Sector | ||||||
| Health Care Equipment & Services | 16 | 18 | 18 | 21 | — | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 40 | 40 | 40 | 45 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 0.89 = 412
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Shockwave Medical Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Average Receivable Collection Period
Shockwave Medical Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.37 | 6.86 | 6.33 | 5.80 | 5.82 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 57 | 53 | 58 | 63 | 63 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | 60 | 52 | 55 | 68 | — | |
| CVS Health Corp. | 36 | 31 | 31 | 30 | — | |
| Elevance Health Inc. | 20 | 19 | 18 | 19 | — | |
| Intuitive Surgical Inc. | 58 | 55 | 50 | 54 | — | |
| Medtronic PLC | 70 | 64 | 66 | 59 | 74 | |
| UnitedHealth Group Inc. | 21 | 20 | 18 | 18 | — | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 30 | 28 | 27 | 27 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 45 | 41 | 42 | 42 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.37 = 57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Shockwave Medical Inc. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Operating Cycle
Shockwave Medical Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 412 | 422 | 379 | 519 | 257 | |
| Average receivable collection period | 57 | 53 | 58 | 63 | 63 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 469 | 475 | 437 | 582 | 320 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Abbott Laboratories | 193 | 170 | 157 | 190 | — | |
| CVS Health Corp. | 58 | 57 | 58 | 61 | — | |
| Intuitive Surgical Inc. | 244 | 216 | 172 | 201 | — | |
| Medtronic PLC | 250 | 230 | 216 | 223 | 224 | |
| Operating Cycle, Sector | ||||||
| Health Care Equipment & Services | 46 | 46 | 45 | 48 | — | |
| Operating Cycle, Industry | ||||||
| Health Care | 85 | 81 | 82 | 87 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 412 + 57 = 469
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Shockwave Medical Inc. operating cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Average Payables Payment Period
Shockwave Medical Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 10.76 | 9.67 | 11.77 | 14.32 | 6.15 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 34 | 38 | 31 | 25 | 59 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | 87 | 88 | 87 | 96 | — | |
| CVS Health Corp. | 18 | 20 | 19 | 19 | — | |
| Elevance Health Inc. | 47 | 49 | 48 | 47 | — | |
| Intuitive Surgical Inc. | 29 | 26 | 25 | 20 | — | |
| Medtronic PLC | 91 | 82 | 73 | 77 | 78 | |
| UnitedHealth Group Inc. | 49 | 50 | 48 | 50 | — | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 37 | 39 | 37 | 37 | — | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 46 | 49 | 48 | 49 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.76 = 34
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Shockwave Medical Inc. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
Cash Conversion Cycle
Shockwave Medical Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 412 | 422 | 379 | 519 | 257 | |
| Average receivable collection period | 57 | 53 | 58 | 63 | 63 | |
| Average payables payment period | 34 | 38 | 31 | 25 | 59 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 435 | 437 | 406 | 557 | 261 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Abbott Laboratories | 106 | 82 | 70 | 94 | — | |
| CVS Health Corp. | 40 | 37 | 39 | 42 | — | |
| Intuitive Surgical Inc. | 215 | 190 | 147 | 181 | — | |
| Medtronic PLC | 159 | 148 | 143 | 146 | 146 | |
| Cash Conversion Cycle, Sector | ||||||
| Health Care Equipment & Services | 9 | 7 | 8 | 11 | — | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 39 | 32 | 34 | 38 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 412 + 57 – 34 = 435
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Shockwave Medical Inc. cash conversion cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |