Cytek Biosciences Inc (CTKB)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cost of revenue	US$ in thousands	83,589	63,062	-76,963
Inventory	US$ in thousands	60,877	48,154	32,171
Inventory turnover		1.37	1.31	-2.39

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $83,589K ÷ $60,877K
= 1.37

The inventory turnover ratio for Cytek Biosciences Inc has shown a positive trend over the three-year period from 2021 to 2023. The ratio increased from -2.39 in 2021 to 1.31 in 2022, and further improved to 1.37 in 2023. This indicates that the company is managing its inventory more efficiently, with the ability to sell and replace its inventory at a faster rate.

A higher inventory turnover ratio signifies that Cytek Biosciences Inc is selling its products more quickly, which can lead to lower inventory carrying costs and reduced risk of obsolescence. This improved efficiency in managing inventory could result in better cash flow and profitability for the company.

Overall, the positive trend in inventory turnover suggests that Cytek Biosciences Inc has been more effective in optimizing its inventory levels and operations over the past three years, potentially leading to enhanced financial performance and operational efficiency.