Halozyme Therapeutics Inc (HALO)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	159,417	192,361	139,304	81,413	43,367
Inventory	US$ in thousands	141,860	127,601	100,123	53,908	60,747
Inventory turnover		1.12	1.51	1.39	1.51	0.71

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $159,417K ÷ $141,860K
= 1.12

Halozyme Therapeutics Inc's inventory turnover has shown varying trends over the past five years. The inventory turnover ratio increased from 0.71 in December 2020 to 1.51 in December 2021, indicating an improvement in the company's efficiency in selling and replenishing its inventory.

However, there was a slight dip in the inventory turnover ratio to 1.39 in December 2022 followed by a recovery to 1.51 in December 2023. This suggests that Halozyme Therapeutics Inc managed its inventory effectively in 2021, but faced challenges in 2022 before returning to a similar level of efficiency in 2023.

In December 2024, the inventory turnover ratio decreased to 1.12, indicating a decrease in the rate at which the company is selling and restocking its inventory. This may raise concerns about the company's inventory management and sales strategy going forward.

Overall, while there have been fluctuations in Halozyme Therapeutics Inc's inventory turnover ratio over the years, it is essential for the company to focus on optimizing its inventory management practices to ensure efficient operations and profitability in the future.