Glaukos Corp (GKOS)

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	369,778	354,357	340,530	325,032	314,520	293,095	284,348	278,841	268,132	263,414	259,244	254,570	252,112	251,063	248,102	244,827	264,189	276,322	272,182	258,517
Inventory	US$ in thousands	57,678	59,895	56,480	50,185	41,986	39,781	39,447	40,455	37,841	34,182	27,842	24,708	23,011	19,720	17,500	15,271	15,809	19,890	21,088	27,699
Inventory turnover		6.41	5.92	6.03	6.48	7.49	7.37	7.21	6.89	7.09	7.71	9.31	10.30	10.96	12.73	14.18	16.03	16.71	13.89	12.91	9.33

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $369,778K ÷ $57,678K
= 6.41

Inventory turnover is a key financial ratio that measures the efficiency of a company in managing its inventory. It indicates how many times a company's inventory is sold and replenished within a specific period.

Analyzing the inventory turnover trend of Glaukos Corp over the past few years, we can see a steady decline in the ratio, indicating a decrease in the efficiency of managing inventory.

From March 31, 2020, to September 30, 2021, the inventory turnover was consistently increasing, peaking at 16.71 on December 31, 2020. This suggests that Glaukos Corp was effectively selling and replenishing its inventory during this period. However, from March 31, 2021, onwards, the inventory turnover started declining gradually.

The declining trend continued until December 31, 2024, where the inventory turnover ratio reached 6.41. This significant drop indicates potential issues in inventory management efficiency, such as overstocking, slow-moving inventory, or ineffective inventory control.

It is important for Glaukos Corp to closely monitor its inventory turnover and take proactive measures to improve inventory management practices to optimize working capital, reduce holding costs, and enhance overall operational efficiency.