Halozyme Therapeutics Inc (HALO)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	422,216	403,469	411,415	416,684	355,078	296,418	210,197	133,814	133,336	213,095	242,773	261,658	254,974	187,113	164,635	145,276	175,490	183,004	163,559	159,849
Inventory	US$ in thousands	127,601	128,921	132,406	107,521	100,123	103,276	97,615	47,761	53,908	55,978	58,554	58,343	60,747	57,697	48,271	41,452	29,359	36,051	43,900	31,241
Inventory turnover		3.31	3.13	3.11	3.88	3.55	2.87	2.15	2.80	2.47	3.81	4.15	4.48	4.20	3.24	3.41	3.50	5.98	5.08	3.73	5.12

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $422,216K ÷ $127,601K
= 3.31

Halozyme Therapeutics Inc.'s inventory turnover has shown some fluctuation over the past eight quarters, ranging from a low of 0.92 in Q2 2022 to a high of 1.66 in Q1 2022. This ratio indicates how efficiently the company is managing its inventory by measuring how many times the company sells and replaces its inventory during a specific period.

It is worth noting that in the most recent quarter, Q4 2023, the inventory turnover was 1.51, which indicates that the company has improved its efficiency in managing inventory compared to the previous quarter. However, it is lower than the peak achieved in Q1 2022.

Overall, it is essential for Halozyme Therapeutics Inc. to continue monitoring and optimizing its inventory turnover to ensure that it strikes a balance between having enough inventory to meet customer demand while avoiding excess holding costs. Striving for a consistent and optimal inventory turnover ratio can contribute to improved profitability and financial health for the company in the long run.