Bio-Rad Laboratories Inc (BIO)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,187,600	1,244,320	1,234,920	1,281,880	1,107,800
Inventory	US$ in thousands	760,000	780,517	719,316	572,239	622,253
Inventory turnover		1.56	1.59	1.72	2.24	1.78

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,187,600K ÷ $760,000K
= 1.56

Bio-Rad Laboratories Inc's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures how effectively the company manages its inventory by indicating the number of times the inventory is sold and replaced within a given period.

In December 31, 2020, the inventory turnover stood at 1.78, suggesting that the company turned over its inventory approximately 1.78 times during that year. This indicates that Bio-Rad Laboratories Inc took around 205 days (365 days divided by 1.78) to sell and replace its inventory.

Over the subsequent years, the inventory turnover ratio improved to 2.24 in December 31, 2021, indicating a more efficient management of inventory. However, in December 31, 2022, the ratio decreased to 1.72, and continued to decline in the following years to 1.59 in December 31, 2023, and 1.56 in December 31, 2024.

The decreasing trend in the inventory turnover ratio from 2022 to 2024 suggests that Bio-Rad Laboratories Inc may be facing challenges in managing its inventory effectively. This can have implications for the company's cash flow, profitability, and overall operational efficiency. It is important for the company to closely monitor and analyze its inventory management practices to optimize the turnover ratio and improve its overall financial performance.