Globus Medical (GMED)

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	1,124,940	1,126,989	961,788	748,512	548,174	353,279	283,386	275,383	263,725	254,930	247,987	243,363	239,223	238,286	236,829	223,626	217,463	205,364	193,654	187,001
Inventory	US$ in thousands	659,233	717,703	770,463	816,196	848,135	904,977	335,556	321,033	298,981	282,408	266,043	253,886	237,001	234,368	231,208	232,007	229,153	231,858	224,457	208,451
Inventory turnover		1.71	1.57	1.25	0.92	0.65	0.39	0.84	0.86	0.88	0.90	0.93	0.96	1.01	1.02	1.02	0.96	0.95	0.89	0.86	0.90

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,124,940K ÷ $659,233K
= 1.71

The inventory turnover for Globus Medical has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2021, the inventory turnover steadily increased from 0.90 to 1.01, indicating the company was managing its inventory efficiently during this period.

However, from March 31, 2022, to September 30, 2023, the inventory turnover decreased, reaching a low of 0.39 on September 30, 2023. This significant drop may suggest issues in managing and selling inventory effectively during this period.

Subsequently, there was a slight recovery in inventory turnover from March 31, 2024, to December 31, 2024, with the ratio increasing to 1.71 by the end of December 31, 2024. This increase indicates a potential improvement in inventory management efficiency within the company.

Overall, it is important for Globus Medical to closely monitor its inventory turnover to ensure optimal efficiency in managing its inventory levels and maximizing sales through effective inventory control strategies.