Healthcare Services Group Inc (HCSG)
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 | 1,633,665 | 1,646,189 | 1,636,718 | 1,635,601 | 1,640,817 | 1,654,186 | 1,646,536 | 1,623,973 | 1,592,490 | 1,565,130 | 1,564,208 | 1,606,628 | 1,647,195 | 1,676,591 | 1,705,694 | 1,715,806 | 1,766,999 | 1,800,694 | 1,844,827 | 1,877,569 |
| Inventory | US$ in thousands | 18,479 | 19,188 | 19,976 | 20,229 | 21,164 | 22,712 | 23,535 | 24,820 | 26,015 | 26,714 | 28,008 | 29,170 | 31,586 | 32,692 | 33,677 | 36,938 | 36,517 | 38,888 | 39,977 | 40,982 |
| Inventory turnover | 88.41 | 85.79 | 81.93 | 80.85 | 77.53 | 72.83 | 69.96 | 65.43 | 61.21 | 58.59 | 55.85 | 55.08 | 52.15 | 51.28 | 50.65 | 46.45 | 48.39 | 46.30 | 46.15 | 45.81 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,633,665K ÷ $18,479K
= 88.41
Healthcare Services Group, Inc.'s inventory turnover has shown a consistent increasing trend over the past eight quarters. The inventory turnover ratio, which measures how many times a company's inventory is sold and replaced over a period, has steadily improved from 58.49 in Q1 2022 to 78.83 in Q4 2023. This indicates that the company is managing its inventory more efficiently and effectively converting inventory into sales at a faster rate.
The increasing inventory turnover ratio suggests that Healthcare Services Group, Inc. is optimizing its inventory levels, which can lead to reduced carrying costs and better cash flow management. A higher inventory turnover ratio also indicates that the company is effectively managing inventory to meet customer demand without holding excess stock. This improved efficiency in inventory management can potentially lead to higher profitability for the company.
Overall, the upward trend in Healthcare Services Group, Inc.'s inventory turnover ratio demonstrates positive performance and effective management of its inventory resources.