Edwards Lifesciences Corp (EW)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,117,500	1,379,800	1,080,400	1,248,900	1,080,600
Inventory	US$ in thousands	1,086,700	1,168,200	875,500	726,700	802,300
Inventory turnover		1.03	1.18	1.23	1.72	1.35

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,117,500K ÷ $1,086,700K
= 1.03

Based on the provided data, the inventory turnover for Edwards Lifesciences Corp has shown some fluctuation over the past five years. In December 31, 2020, the company's inventory turnover was 1.35 times, indicating that the company's inventory was turned over 1.35 times during that year.

Subsequently, the inventory turnover increased to 1.72 times by December 31, 2021, suggesting an improvement in the efficiency of managing inventory. However, the trend reversed in the following years, with the inventory turnover decreasing to 1.23 times by December 31, 2022, and further dropping to 1.18 times by December 31, 2023.

By the end of December 31, 2024, the inventory turnover ratio stood at 1.03 times, demonstrating a decline in the efficiency of turning over inventory. It is essential for the company to closely monitor its inventory management practices to ensure optimal efficiency and cost control in the future.