Hims Hers Health Inc (HIMS)
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 | 303,379 | 234,342 | 190,063 | 168,782 | 157,051 | 149,356 | 140,348 | 128,981 | 118,194 | 105,929 | 94,847 | 81,875 | 67,384 | 54,357 | 45,103 | 41,930 | 39,307 | 29,977 | 20,380 | 10,155 |
| Inventory | US$ in thousands | 64,427 | 49,110 | 40,588 | 29,826 | 22,464 | 21,992 | 21,417 | 20,697 | 21,562 | 22,347 | 19,673 | 12,143 | 13,558 | 10,858 | 6,590 | 4,523 | 3,543 | 4,952 | 6,221 | 6,221 |
| Inventory turnover | 4.71 | 4.77 | 4.68 | 5.66 | 6.99 | 6.79 | 6.55 | 6.23 | 5.48 | 4.74 | 4.82 | 6.74 | 4.97 | 5.01 | 6.84 | 9.27 | 11.09 | 6.05 | 3.28 | 1.63 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $303,379K ÷ $64,427K
= 4.71
The inventory turnover ratio for Hims Hers Health Inc has shown fluctuation over the period from March 31, 2020, to December 31, 2024.
The ratio indicates how efficiently the company manages its inventory by measuring how many times, on average, the company sells and replaces its inventory during a specific period.
Initially, in March 2020, the inventory turnover was at a relatively low level of 1.63, suggesting slower inventory movement. However, this ratio more than doubled by June 2020, reaching 3.28, and continued to increase significantly throughout the following quarters, peaking at 11.09 by December 2020.
Subsequently, the inventory turnover ratio began to decrease but remained at relatively high levels compared to the initial periods. From March 2021 to December 2024, the ratio fluctuated around the range of 4.68 to 6.99. This indicates that on average, the company has been able to efficiently sell and replace its inventory multiple times throughout the period, although at a slightly slower pace compared to the peak in December 2020.
Overall, the trends in Hims Hers Health Inc's inventory turnover demonstrate fluctuations in inventory management efficiency over the analyzed period, with notable improvements initially and maintaining relatively good levels thereafter. It will be essential for the company to monitor and manage inventory levels effectively to ensure optimal operations and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024