Hims Hers Health Inc (HIMS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 157,051 | 118,194 | 67,384 | 39,307 | 37,953 |
| Inventory | US$ in thousands | 22,464 | 21,562 | 13,558 | 3,543 | 4,217 |
| Inventory turnover | 6.99 | 5.48 | 4.97 | 11.09 | 9.00 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $157,051K ÷ $22,464K
= 6.99
The inventory turnover for Hims Hers Health Inc has fluctuated over the past five years. In 2023, the company achieved an inventory turnover of 6.99 times, indicating that its inventory was sold and replenished approximately 7 times during the year. This represents an improvement from the previous year's turnover of 5.48 times.
Comparing to 2021 and 2020, the inventory turnover was 4.97 and 11.09 times, respectively. The significant decrease in 2021 may indicate that the company faced challenges in managing its inventory efficiently, while the spike in turnover in 2020 suggests a more streamlined inventory management process.
Overall, Hims Hers Health Inc's inventory turnover has shown variability in recent years, but the latest figure of 6.99 times demonstrates an improved efficiency in managing its inventory levels relative to the previous year. However, it is important for the company to continue monitoring and optimizing its inventory turnover to ensure optimal utilization of its resources.