Exelixis Inc (EXEL)

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	615,252	597,229	570,599	547,411	517,765	494,822	477,966	455,105	454,588	433,836	391,634	368,225	295,000	272,070	288,312	252,481	253,564	244,747	164,635	156,765
Inventory	US$ in thousands	17,323	24,978	28,635	29,908	33,299	26,711	33,020	28,467	27,493	28,240	24,982	24,757	20,973	19,319	16,608	15,417	12,886	13,366	12,352	10,143
Inventory turnover		35.52	23.91	19.93	18.30	15.55	18.53	14.48	15.99	16.53	15.36	15.68	14.87	14.07	14.08	17.36	16.38	19.68	18.31	13.33	15.46

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $615,252K ÷ $17,323K
= 35.52

Exelixis Inc's inventory turnover has shown a fluctuating trend over the past few years, ranging from a low of 13.33 in March 2019 to a high of 35.52 in December 2023. This ratio indicates how efficiently the company is managing its inventory by selling and replacing it over a given period.

A higher inventory turnover ratio suggests that Exelixis is selling its inventory quickly and efficiently, which can be a positive sign of effective inventory management and strong sales performance. However, a very high inventory turnover ratio may also indicate potential issues like stockouts or lost sales due to insufficient inventory levels.

On the other hand, a lower inventory turnover ratio may imply excess inventory levels, slow-moving inventory, or challenges in selling products efficiently. This could tie up capital in inventory and lead to higher storage costs or obsolescence risks.

Overall, it's essential for Exelixis to analyze the reasons behind the fluctuations in its inventory turnover ratio and take appropriate actions to optimize its inventory management strategies for sustainable growth and profitability.