Healthcare Services Group Inc (HCSG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,487,590 | 1,456,640 | 1,496,340 | 1,415,080 | 1,492,320 |
| Inventory | US$ in thousands | 16,749 | 18,479 | 21,164 | 26,015 | 31,586 |
| Inventory turnover | 88.82 | 78.83 | 70.70 | 54.39 | 47.25 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,487,590K ÷ $16,749K
= 88.82
Based on the data provided, Healthcare Services Group Inc's inventory turnover has shown a consistent upward trend over the five-year period from December 31, 2020, to December 31, 2024. The inventory turnover ratio increased from 47.25 in 2020 to 88.82 in 2024, indicating that the company has been more efficient in managing its inventory.
A higher inventory turnover ratio suggests that Healthcare Services Group Inc is selling its inventory more frequently within a given period, which can be a positive sign of effective inventory management and demand for its products or services.
The steady increase in the inventory turnover ratio indicates that the company has been successful in optimizing its inventory levels, reducing holding costs, and potentially improving cash flow. This trend reflects positively on Healthcare Services Group Inc's operational efficiency and could indicate a healthier financial position.
Overall, the improving inventory turnover ratio for Healthcare Services Group Inc demonstrates effective inventory management practices and may contribute to better profitability and liquidity for the company.