Globus Medical (GMED)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	548,174	263,725	239,223	217,463	179,975
Inventory	US$ in thousands	848,135	298,981	237,001	229,153	196,314
Inventory turnover		0.65	0.88	1.01	0.95	0.92

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $548,174K ÷ $848,135K
= 0.65

Inventory turnover measures how many times a company's inventory is sold and replaced over a specific period. Globus Medical Inc's inventory turnover has shown a declining trend over the past five years, with the ratio decreasing from 0.92 in 2019 to 0.65 in 2023. This indicates that the company's inventory is now taking longer to be sold and replaced, which could potentially lead to higher carrying costs and a lower rate of inventory turnover efficiency. Further analysis and investigation into the reasons behind this decline in inventory turnover would be beneficial to assess the company's inventory management practices and overall operational efficiency.