Stock Analysis on Net

Edwards Lifesciences Corp. (NYSE:EW)

This company has been moved to the archive! The financial data has not been updated since February 14, 2022.

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Edwards Lifesciences Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 1.72 1.35 1.74 1.55 1.58
Receivables turnover 8.99 8.52 8.00 8.15 8.15
Payables turnover 6.11 5.50 6.18 7.01 7.51
Working capital turnover 2.44 2.00 2.09 2.64 3.04
Average No. Days
Average inventory processing period 212 271 210 236 231
Add: Average receivable collection period 41 43 46 45 45
Operating cycle 253 314 256 281 276
Less: Average payables payment period 60 66 59 52 49
Cash conversion cycle 193 248 197 229 227

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Edwards Lifesciences Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Edwards Lifesciences Corp. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Edwards Lifesciences Corp. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Edwards Lifesciences Corp. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

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. Edwards Lifesciences Corp. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Edwards Lifesciences Corp. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Edwards Lifesciences Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
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. Edwards Lifesciences Corp. number of days of payables outstanding increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 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. Edwards Lifesciences Corp. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Inventory Turnover

Edwards Lifesciences Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Cost of sales 1,248,900 1,080,600 1,114,400 939,400 875,300
Inventories 726,700 802,300 640,900 607,000 554,900
Short-term Activity Ratio
Inventory turnover1 1.72 1.35 1.74 1.55 1.58
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories 3.59 2.99 3.07
Cigna Group 31.58 32.70 36.70
CVS Health Corp. 13.52 11.88 12.06
Intuitive Surgical Inc. 2.98 2.49 2.30
Medtronic PLC 2.43 2.23 2.44
Inventory Turnover, Sector
Health Care Equipment & Services 23.69 20.89 21.66
Inventory Turnover, Industry
Health Care 10.91 9.96 10.08

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 1,248,900 ÷ 726,700 = 1.72

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. Edwards Lifesciences Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Receivables Turnover

Edwards Lifesciences Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net sales 5,232,500 4,386,300 4,348,000 3,722,800 3,435,300
Accounts receivable, net of allowances 582,200 514,600 543,600 456,900 421,600
Short-term Activity Ratio
Receivables turnover1 8.99 8.52 8.00 8.15 8.15
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 6.64 5.40 5.88
Cigna Group 19.35 19.47 20.05
CVS Health Corp. 11.91 12.32 13.04
Elevance Health Inc. 20.66 19.72 18.20
Humana Inc. 45.69 66.78 60.97
Intuitive Surgical Inc. 7.30 6.75 6.94
Medtronic PLC 5.51 6.22 4.91
UnitedHealth Group Inc. 20.07 19.86 20.32
Receivables Turnover, Sector
Health Care Equipment & Services 14.99 15.09 14.97
Receivables Turnover, Industry
Health Care 9.45 9.50 9.90

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net of allowances
= 5,232,500 ÷ 582,200 = 8.99

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. Edwards Lifesciences Corp. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Payables Turnover

Edwards Lifesciences Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Cost of sales 1,248,900 1,080,600 1,114,400 939,400 875,300
Accounts payable 204,500 196,500 180,400 134,000 116,600
Short-term Activity Ratio
Payables turnover1 6.11 5.50 6.18 7.01 7.51
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 4.21 3.80 4.07
Cigna Group 7.68 7.75 9.34
CVS Health Corp. 19.14 19.72 20.13
Elevance Health Inc. 7.59 7.75 9.25
Humana Inc. 8.35 7.57 8.97
Intuitive Surgical Inc. 14.45 18.35 11.08
Medtronic PLC 4.98 4.72 4.69
UnitedHealth Group Inc. 7.63 7.29 7.21
Payables Turnover, Sector
Health Care Equipment & Services 9.25 9.16 9.95
Payables Turnover, Industry
Health Care 7.68 7.52 8.05

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 1,248,900 ÷ 204,500 = 6.11

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. Edwards Lifesciences Corp. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Working Capital Turnover

Edwards Lifesciences Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Current assets 3,180,700 3,091,000 2,984,000 2,286,900 2,532,100
Less: Current liabilities 1,032,300 893,900 902,400 876,600 1,402,900
Working capital 2,148,400 2,197,100 2,081,600 1,410,300 1,129,200
 
Net sales 5,232,500 4,386,300 4,348,000 3,722,800 3,435,300
Short-term Activity Ratio
Working capital turnover1 2.44 2.00 2.09 2.64 3.04
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 3.87 4.06 6.64
Cigna Group
CVS Health Corp.
Elevance Health Inc. 7.23 6.39 6.11
Humana Inc. 8.67 7.42 7.19
Intuitive Surgical Inc. 1.22 0.77 1.23
Medtronic PLC 2.15 2.48 2.26
UnitedHealth Group Inc.
Working Capital Turnover, Sector
Health Care Equipment & Services 40.87 44.34 59.48
Working Capital Turnover, Industry
Health Care 13.72 14.03 9.09

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Working capital turnover = Net sales ÷ Working capital
= 5,232,500 ÷ 2,148,400 = 2.44

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. Edwards Lifesciences Corp. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Average Inventory Processing Period

Edwards Lifesciences Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Inventory turnover 1.72 1.35 1.74 1.55 1.58
Short-term Activity Ratio (no. days)
Average inventory processing period1 212 271 210 236 231
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories 102 122 119
Cigna Group 12 11 10
CVS Health Corp. 27 31 30
Intuitive Surgical Inc. 122 147 159
Medtronic PLC 150 164 150
Average Inventory Processing Period, Sector
Health Care Equipment & Services 15 17 17
Average Inventory Processing Period, Industry
Health Care 33 37 36

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.72 = 212

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. Edwards Lifesciences Corp. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Average Receivable Collection Period

Edwards Lifesciences Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Receivables turnover 8.99 8.52 8.00 8.15 8.15
Short-term Activity Ratio (no. days)
Average receivable collection period1 41 43 46 45 45
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 55 68 62
Cigna Group 19 19 18
CVS Health Corp. 31 30 28
Elevance Health Inc. 18 19 20
Humana Inc. 8 5 6
Intuitive Surgical Inc. 50 54 53
Medtronic PLC 66 59 74
UnitedHealth Group Inc. 18 18 18
Average Receivable Collection Period, Sector
Health Care Equipment & Services 24 24 24
Average Receivable Collection Period, Industry
Health Care 39 38 37

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.99 = 41

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. Edwards Lifesciences Corp. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.

Operating Cycle

Edwards Lifesciences Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 212 271 210 236 231
Average receivable collection period 41 43 46 45 45
Short-term Activity Ratio
Operating cycle1 253 314 256 281 276
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories 157 190 181
Cigna Group 31 30 28
CVS Health Corp. 58 61 58
Intuitive Surgical Inc. 172 201 212
Medtronic PLC 216 223 224
Operating Cycle, Sector
Health Care Equipment & Services 39 41 41
Operating Cycle, Industry
Health Care 72 75 73

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 212 + 41 = 253

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. Edwards Lifesciences Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Average Payables Payment Period

Edwards Lifesciences Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Payables turnover 6.11 5.50 6.18 7.01 7.51
Short-term Activity Ratio (no. days)
Average payables payment period1 60 66 59 52 49
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 87 96 90
Cigna Group 48 47 39
CVS Health Corp. 19 19 18
Elevance Health Inc. 48 47 39
Humana Inc. 44 48 41
Intuitive Surgical Inc. 25 20 33
Medtronic PLC 73 77 78
UnitedHealth Group Inc. 48 50 51
Average Payables Payment Period, Sector
Health Care Equipment & Services 39 40 37
Average Payables Payment Period, Industry
Health Care 48 49 45

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.11 = 60

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. Edwards Lifesciences Corp. number of days of payables outstanding increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Cash Conversion Cycle

Edwards Lifesciences Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 212 271 210 236 231
Average receivable collection period 41 43 46 45 45
Average payables payment period 60 66 59 52 49
Short-term Activity Ratio
Cash conversion cycle1 193 248 197 229 227
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories 70 94 91
Cigna Group -17 -17 -11
CVS Health Corp. 39 42 40
Intuitive Surgical Inc. 147 181 179
Medtronic PLC 143 146 146
Cash Conversion Cycle, Sector
Health Care Equipment & Services 0 1 4
Cash Conversion Cycle, Industry
Health Care 24 26 28

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 212 + 4160 = 193

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. Edwards Lifesciences Corp. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.