Biogen Inc (BIIB)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	5,542,500	5,433,300	4,957,700	4,909,800	5,059,300	5,931,600	6,049,300	6,019,100	5,665,300	3,826,700	3,109,900	2,424,000	1,805,200	1,761,600	1,742,500	1,807,700	1,955,400	1,996,800	2,027,600	1,972,300
Inventory	US$ in thousands	2,527,400	2,982,400	1,333,500	1,281,000	1,344,400	1,375,000	1,294,200	1,215,400	1,351,500	1,347,900	1,254,800	1,171,800	1,068,600	1,027,700	952,700	858,800	804,200	751,800	776,700	770,200
Inventory turnover		2.19	1.82	3.72	3.83	3.76	4.31	4.67	4.95	4.19	2.84	2.48	2.07	1.69	1.71	1.83	2.10	2.43	2.66	2.61	2.56

December 31, 2023 calculation

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

Biogen Inc's inventory turnover ratio has exhibited fluctuations over the past eight quarters. The ratio has ranged from a low of 0.83 in Q3 2023 to a high of 1.96 in Q1 2022, indicating varying efficiencies in managing its inventory levels.

A lower inventory turnover ratio, such as in Q3 2023, suggests that the company is holding onto its inventory for a longer period before selling it, which may lead to higher storage costs and potential obsolescence risks. Conversely, a higher inventory turnover ratio, as seen in Q1 2022, indicates that Biogen is selling its inventory more quickly, potentially resulting in lower carrying costs and better liquidity.

Overall, the trend seems to show some seasonality, with inventory turnover ratios fluctuating from quarter to quarter. Further analysis of the reasons behind these fluctuations, such as changes in demand, production efficiencies, or inventory management practices, would be beneficial in gaining a deeper understanding of Biogen Inc's inventory turnover performance.