Industry Profiles

Medical Equipment & Supplies DSO Benchmarks

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The growth and innovation of surgical procedures have made medical equip and supplies the fourth largest industry in the CSI.

A six-year review of credit benchmarks for the medical equipment and supply industry, one of the world's most important, show steady improvement in the area of credit risk and few problems with liquidity and solvency.

The technology-driven medical equipment and supply industry is governed by an unusual paradox in the world of credit standards -- relatively slow turnover of accounts receivable and low operating cash flow yet one of the highest liquidity and solvency rates of any other industry.  In fact, not one company out of the 82 in this CSI industry group scored a five, the worst score, in current ratio or debts-to-assets ratio, two key measures of liquidity and solvency.

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