Bio-Rad Laboratories Inc (BIO)

Inventory turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 2,111,140 2,107,340 2,265,560 1,937,470 1,904,290
Inventory US$ in thousands 780,517 719,316 572,239 622,253 554,007
Inventory turnover 2.70 2.93 3.96 3.11 3.44

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,111,140K ÷ $780,517K
= 2.70

The inventory turnover ratio for Bio-Rad Laboratories Inc. has exhibited fluctuations over the past five years. In 2021, the company's inventory turnover was at its highest level, indicating that Bio-Rad Laboratories managed to sell its inventory 2.24 times during the year. This suggests efficient inventory management and a quick turnover of goods.

However, in 2023, the inventory turnover ratio decreased to 1.59, which may indicate a slower rate of inventory turnover compared to the previous year. A lower inventory turnover ratio could imply excess inventory levels or challenges in selling products efficiently.

Overall, while the inventory turnover ratio for Bio-Rad Laboratories Inc. has shown variability over the years, it is essential for the company to monitor and manage its inventory effectively to optimize its working capital and profitability.