Hologic Inc (HOLX)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,802,500 | 1,958,900 | 1,865,400 | 1,836,500 | 1,548,900 |
| Inventory | US$ in thousands | 679,800 | 617,600 | 623,700 | 501,200 | 395,100 |
| Inventory turnover | 2.65 | 3.17 | 2.99 | 3.66 | 3.92 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,802,500K ÷ $679,800K
= 2.65
Hologic Inc's inventory turnover ratio has shown a declining trend over the past five years. The ratio decreased from 3.92 in September 2020 to 2.65 in September 2024, indicating that the company has been less efficient in managing its inventory levels and turning over inventory into sales in recent years. A lower inventory turnover ratio suggests that Hologic Inc is holding onto its inventory for a longer period before selling it, which could potentially lead to increased holding costs and obsolescence risk.
It is essential for Hologic Inc to closely monitor its inventory levels and sales performance to improve its inventory turnover ratio. A lower ratio may indicate inefficiencies in inventory management, production, or sales processes that need to be addressed to enhance overall operational efficiency and profitability. Therefore, the company may need to reevaluate its inventory management strategies to optimize inventory levels and enhance the timely conversion of inventory into sales to improve financial performance.
Peer comparison
Sep 30, 2024