Healthcare Services Group Inc (HCSG)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 1,449,749 1,417,559 1,430,383 1,445,591 1,454,680 1,474,471 1,473,811 1,485,453 1,496,336 1,506,756 1,494,684 1,451,725 1,415,082 1,390,053 1,390,674 1,441,780 1,492,317 1,526,839 1,559,800 1,572,768
Inventory US$ in thousands 16,749 17,046 17,857 18,042 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
Inventory turnover 86.56 83.16 80.10 80.12 78.72 76.84 73.78 73.43 70.70 66.34 63.51 58.49 54.39 52.03 49.65 49.43 47.25 46.70 46.32 42.58

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,449,749K ÷ $16,749K
= 86.56

Healthcare Services Group Inc has shown a consistent improvement in its inventory turnover over the reported periods, indicating efficient management of inventory. The inventory turnover ratio, which measures how many times a company sells and replaces its inventory during a specific period, has been steadily increasing.

From March 31, 2020, to December 31, 2024, the inventory turnover has increased from 42.58 to 86.56. This upward trend suggests that the company is able to sell its inventory more frequently, which can be a sign of effective inventory management, reduced obsolescence, and improved liquidity.

The most recent data point, as of December 31, 2024, shows an inventory turnover of 86.56, which indicates that Healthcare Services Group Inc is selling and replacing its inventory approximately 86.56 times a year. This high turnover rate demonstrates the company's ability to efficiently manage its inventory levels to meet demand and generate sales.

Overall, the increasing trend in inventory turnover for Healthcare Services Group Inc reflects positively on the company's operational efficiency and ability to effectively manage its inventory to support its business operations.