Hologic Inc (HOLX)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,958,900 | 1,865,400 | 1,836,500 | 1,548,900 | 2,196,400 |
| Inventory | US$ in thousands | 617,600 | 623,700 | 501,200 | 395,100 | 444,900 |
| Inventory turnover | 3.17 | 2.99 | 3.66 | 3.92 | 4.94 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,958,900K ÷ $617,600K
= 3.17
Hologic, Inc.'s inventory turnover has experienced fluctuations over the past five years. The inventory turnover ratio, which measures the company's efficiency in managing its inventory, indicates the number of times the company sells and replaces its inventory during a specific period.
In 2023, the inventory turnover decreased slightly to 2.55 from 2.49 in 2022. This indicates that the company's efficiency in managing its inventory decreased slightly. The decrease in turnover may suggest that the company is holding more inventory, which could tie up capital and increase storage costs.
Comparing the most recent inventory turnover to previous years, there has been a general downward trend since 2019. This decline may reflect challenges in managing inventory levels efficiently. A lower inventory turnover could indicate excessive inventory levels or potential difficulties in selling existing inventory.
It is essential for Hologic, Inc. to monitor its inventory turnover closely and assess the reasons behind the fluctuations over the years. High or fluctuating inventory turnover can impact the company's working capital management and profitability. Further analysis of the company's inventory management practices and sales strategies may provide insights into the reasons for the fluctuations in inventory turnover.
Peer comparison
Sep 30, 2023