Edwards Lifesciences Corp (EW)

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	3,209,300	3,041,000	2,882,100	2,748,800	2,652,600	2,720,600	2,765,600	2,796,000	2,750,600	2,649,700	2,561,800	2,366,100	2,314,800	2,312,400	2,322,800	2,422,200	2,361,400	2,248,400	2,144,200	2,052,800
Inventory	US$ in thousands	1,168,200	1,032,400	980,200	914,300	875,500	757,800	740,000	730,600	726,700	737,800	759,500	767,900	802,300	773,300	735,100	662,200	640,900	611,100	624,900	630,900
Inventory turnover		2.75	2.95	2.94	3.01	3.03	3.59	3.74	3.83	3.79	3.59	3.37	3.08	2.89	2.99	3.16	3.66	3.68	3.68	3.43	3.25

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,209,300K ÷ $1,168,200K
= 2.75

The inventory turnover ratio for Edwards Lifesciences Corp has been fluctuating over the past eight quarters, indicating changes in how efficiently the company manages its inventory. The trend shows a decreasing trend, starting with a high of 1.72 in Q1 2022 and declining to 1.18 in Q4 2023. A decreasing inventory turnover ratio may suggest potential issues such as overstocking, obsolete inventory, or slowing sales.

It is essential for Edwards Lifesciences Corp to closely monitor its inventory levels and adjust its procurement and production processes accordingly to optimize inventory turnover and minimize holding costs. A lower inventory turnover ratio may also indicate liquidity concerns or operational inefficiencies that need to be addressed to improve overall financial performance and profitability.