3D Systems Corporation (DDD)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	858,866	610,760	615,857	673,891	657,532
Inventory	US$ in thousands	152,188	137,832	92,887	116,667	111,106
Inventory turnover		5.64	4.43	6.63	5.78	5.92

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $858,866K ÷ $152,188K
= 5.64

3D Systems Corporation's inventory turnover has fluctuated over the past five years, ranging from 4.43 to 6.63. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory within a given period.

In 2023, the inventory turnover ratio was 5.64, showing an improvement from the previous year's 4.43. This indicates that the company has been more efficient in managing its inventory and turning it into sales. A higher inventory turnover ratio generally indicates that a company is selling products more quickly or managing its inventory levels effectively.

Comparing the inventory turnover ratios from the past five years, it is evident that there have been fluctuations in efficiency in managing inventory. The highest turnover was seen in 2021 at 6.63, suggesting that the company had a particularly efficient period in managing its inventory that year. However, the ratios have generally been within a relatively close range, indicating a consistent effort to manage inventory efficiently.

It is important for 3D Systems Corporation to continue monitoring and improving its inventory turnover ratio to ensure optimal inventory management and profitability. Overall, the trend in the inventory turnover ratios reflects the company's ability to effectively control its inventory levels and convert them into sales.