Hims Hers Health Inc (HIMS)

Inventory turnover

		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	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	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	4,217
Inventory turnover		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

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $234,342K ÷ $49,110K
= 4.77

The inventory turnover for Hims Hers Health Inc has fluctuated over the past few quarters. Generally, a higher inventory turnover ratio indicates that the company is efficiently managing its inventory by quickly selling and restocking products.

Looking at the trend, the inventory turnover ratio has shown a general upward trend from December 2019 to March 2021, reaching a peak of 11.09 in March 2021. This indicates that the company was effectively managing its inventory during this period.

However, from then on, the inventory turnover ratio started to decline, reaching its lowest point of 1.63 in December 2019. This significant drop may indicate challenges in managing inventory or a slowdown in sales.

It is worth noting that the inventory turnover ratio has improved from the lowest point in December 2019, reaching 4.77 in September 2024. Although it has shown some improvement, the company may still need to continue monitoring its inventory management practices to ensure efficiency and profitability.