Healthcare Services Group Inc (HCSG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,633,720 | 1,640,920 | 1,592,590 | 1,647,300 | 1,767,100 |
| Inventory | US$ in thousands | 18,479 | 21,164 | 26,015 | 31,586 | 36,517 |
| Inventory turnover | 88.41 | 77.53 | 61.22 | 52.15 | 48.39 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,633,720K ÷ $18,479K
= 88.41
Healthcare Services Group, Inc.'s inventory turnover has shown a consistent increasing trend over the past five years. The inventory turnover ratio measures how many times a company's inventory is sold and replaced during a specific period.
The inventory turnover ratio for Healthcare Services Group, Inc. was 78.83 in 2023, indicating that the company sold and replaced its inventory approximately 78.83 times during the year. This is an improvement from 70.70 in 2022, 54.39 in 2021, 47.25 in 2020, and 44.17 in 2019.
A high inventory turnover ratio suggests that the company is efficiently managing its inventory levels by quickly selling its products and restocking them. In the case of Healthcare Services Group, Inc., the increasing trend in inventory turnover indicates an improvement in the efficiency of its inventory management and sales operations over the years.
Overall, the increasing inventory turnover ratio for Healthcare Services Group, Inc. reflects positively on the company's operational efficiency in managing its inventory and generating sales.