Dynavax Technologies Corporation (DVAX)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	205,240	263,498	305,592	374,532	395,383	489,859	423,409	325,444	275,854	90,983	85,595	83,166	83,877	89,277	92,435	102,219	100,302	95,829	90,721	77,436
Inventory	US$ in thousands	53,290	49,412	53,088	57,693	59,446	102,609	73,979	79,038	61,335	67,297	86,451	68,846	63,689	59,033	54,392	48,099	41,332	39,356	36,629	27,569
Inventory turnover		3.85	5.33	5.76	6.49	6.65	4.77	5.72	4.12	4.50	1.35	0.99	1.21	1.32	1.51	1.70	2.13	2.43	2.43	2.48	2.81

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $205,240K ÷ $53,290K
= 3.85

Inventory turnover is a vital financial ratio that measures how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory during a specific period. A higher inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently.

Analyzing the inventory turnover of Dynavax Technologies Corp. over the past eight quarters reveals fluctuations in the efficiency of their inventory management. In Q1 2023, the inventory turnover ratio was 4.11, signifying that the company was selling its inventory over four times during that quarter. This indicates efficient inventory management and a quicker turnover of goods.

However, in Q4 2023, the inventory turnover ratio dropped significantly to 0.94, which could indicate inefficiencies in the management of inventory during that period. This decline may be due to various factors such as overstocking, slow sales, or poor demand forecasting.

Overall, Dynavax Technologies Corp. has displayed varying levels of inventory turnover over the analyzed period. It is essential for the company to maintain a balance in inventory levels to ensure efficient operations and maximize profitability. Identifying the reasons behind fluctuations in the inventory turnover ratio can help the company make informed decisions to improve its inventory management practices.