Biomarin Pharmaceutical Inc (BMRN)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 580,235 579,574 519,158 519,318 529,610 521,422 509,669 502,176 483,669 476,129 463,378 467,314 470,515 476,903 562,159 533,064 524,272 494,033 402,189 381,658
Inventory US$ in thousands 1,232,650 1,179,340 1,183,620 1,137,980 1,107,180 1,032,160 975,546 918,921 894,083 839,460 802,315 786,356 776,669 749,406 710,975 713,929 698,548 700,847 743,852 705,652
Inventory turnover 0.47 0.49 0.44 0.46 0.48 0.51 0.52 0.55 0.54 0.57 0.58 0.59 0.61 0.64 0.79 0.75 0.75 0.70 0.54 0.54

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $580,235K ÷ $1,232,650K
= 0.47

Biomarin Pharmaceutical Inc's inventory turnover has shown a fluctuating trend over the past few years. The company's inventory turnover ratio decreased from 0.54 on March 31, 2020, to a low of 0.44 on June 30, 2024, before slightly improving to 0.47 on December 31, 2024. This indicates that Biomarin was able to sell and replace its inventory approximately 0.44 to 0.54 times during the respective periods, reflecting a moderate efficiency in managing its inventory.

The decreasing trend in inventory turnover may suggest inefficiencies in managing inventory levels, which could lead to higher carrying costs and potential obsolescence risks. It is important for Biomarin to closely monitor its inventory levels and implement strategies to improve inventory turnover, such as optimizing procurement processes, managing production levels, and adjusting sales and marketing strategies to match demand.

Overall, Biomarin Pharmaceutical Inc should focus on maintaining an optimal balance between inventory levels and sales demand to enhance its operational efficiency and financial performance.