ANI Pharmaceuticals Inc (ANIP)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	403,001	320,375	229,078	87,157	63,154
Inventory	US$ in thousands	111,196	105,355	81,693	60,803	48,163
Inventory turnover		3.62	3.04	2.80	1.43	1.31

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $403,001K ÷ $111,196K
= 3.62

ANI Pharmaceuticals Inc's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures the efficiency of a company in managing its inventory. A higher ratio indicates that the company is selling its inventory quickly, while a lower ratio suggests slower sales turnover.

In 2023, ANI Pharmaceuticals Inc's inventory turnover ratio was 1.63, which is higher compared to the previous year. This indicates that the company sold its inventory 1.63 times during the year. The increase in the inventory turnover ratio could be attributed to effective inventory management practices, such as optimizing inventory levels and improving demand forecasting.

Despite the fluctuation in the inventory turnover ratio over the years, ANI Pharmaceuticals Inc seems to have maintained a relatively stable turnover rate, with the ratio staying above 1 in each year. This suggests that the company is efficiently managing its inventory levels and achieving a balance between carrying enough inventory to meet demand and avoiding excess stockpiling.

Overall, ANI Pharmaceuticals Inc's inventory turnover ratio indicates that the company has been able to efficiently sell its inventory in recent years, which is a positive sign of effective operations and management in the inventory management function of the business.