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.