Edwards Lifesciences Corp (EW)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,237,100	1,301,800	1,389,300	1,434,500	1,379,800	1,280,800	1,184,200	1,110,600	1,080,400	1,132,000	1,189,900	1,254,800	1,248,900	1,235,700	1,205,000	1,108,900	1,080,600	1,070,500	1,081,900	1,147,700
Inventory	US$ in thousands	1,086,700	1,104,200	1,024,700	1,207,300	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
Inventory turnover		1.14	1.18	1.36	1.19	1.18	1.24	1.21	1.21	1.23	1.49	1.61	1.72	1.72	1.67	1.59	1.44	1.35	1.38	1.47	1.73

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,237,100K ÷ $1,086,700K
= 1.14

The inventory turnover ratio measures how efficiently a company is managing its inventory by showing how many times a company sells and replaces its inventory during a specific period. Looking at the data provided for Edwards Lifesciences Corp, we can observe fluctuations in the inventory turnover ratio over the quarters.

In March 2020, the inventory turnover ratio was 1.73, indicating that the company turned over its inventory approximately 1.73 times during that period. The ratio then decreased to 1.47 in June 2020, and further declined to 1.35 by December 2020. This downward trend suggests a potential challenge in managing inventory effectively during that time frame.

However, from March 2021 to June 2022, the inventory turnover ratio showed a more positive trend, increasing steadily from 1.44 to 1.61. This suggests improved inventory management efficiency during this period.

It is noteworthy that there were fluctuations in the inventory turnover ratio in the subsequent quarters, with values ranging between 1.18 and 1.72. Specifically, there was a significant drop in the ratio to 1.14 by December 2024.

Overall, the analysis of Edwards Lifesciences Corp's inventory turnover ratio reveals fluctuations over time, indicating varying degrees of efficiency in managing its inventory levels. The company may benefit from strategies to optimize inventory turnover and enhance operational performance in the future.