Halozyme Therapeutics Inc (HALO)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	420,816	337,678	133,336	254,974	175,490
Inventory	US$ in thousands	127,601	100,123	53,908	60,747	29,359
Inventory turnover		3.30	3.37	2.47	4.20	5.98

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $420,816K ÷ $127,601K
= 3.30

Halozyme Therapeutics Inc.'s inventory turnover has fluctuated over the past five years. In 2023, the inventory turnover ratio increased to 1.51, indicating that the company generated revenue equivalent to 1.51 times its average inventory balance during the year. This suggests that the company efficiently managed its inventory to meet customer demand and minimize excess inventory holding costs.

Comparing this to the previous years, the inventory turnover ratio was fairly stable in 2021 and 2019 at 1.51 and 1.55, respectively, indicating consistent inventory management practices. However, there was a significant drop in 2020 to 0.71, which may suggest challenges in managing inventory effectively during that year.

Overall, an increasing trend in inventory turnover is generally favorable as it signifies efficient sales and inventory management. Halozyme Therapeutics Inc. should continue monitoring and optimizing its inventory turnover to ensure effective utilization of its resources and maintain a healthy balance between supply and demand.