Biogen Inc (BIIB)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	5,542,500	5,059,300	5,665,300	1,805,200	1,955,400
Inventory	US$ in thousands	2,527,400	1,344,400	1,351,500	1,068,600	804,200
Inventory turnover		2.19	3.76	4.19	1.69	2.43

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,542,500K ÷ $2,527,400K
= 2.19

The inventory turnover ratio for Biogen Inc has been fluctuating over the past five years. In 2023, the inventory turnover ratio was 1.00, indicating that the company effectively turned over its inventory once during the year. This represents a decrease from the previous years, where the ratios were higher at 1.69 in 2022, 1.56 in 2021, 1.69 in 2020, and 2.43 in 2019.

A lower inventory turnover ratio may suggest that the company is holding onto its inventory for a longer period, which could potentially lead to issues such as obsolescence, storage costs, or overstocking. It is important for Biogen Inc to monitor and manage its inventory levels effectively to optimize its operations and maintain a healthy balance between inventory holding and turnover.