Hologic Inc (HOLX)
Inventory turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,948,200 | 1,958,900 | 1,952,400 | 1,788,400 | 1,836,800 | 1,865,300 | 1,915,300 | 1,929,100 | 1,891,800 | 1,836,400 | 1,763,100 | 1,653,200 | 1,561,700 | 1,549,000 | 1,750,100 | 1,800,900 | 2,216,600 | 2,196,500 | 1,972,600 | 1,953,000 |
| Inventory | US$ in thousands | 633,600 | 617,600 | 680,100 | 687,600 | 677,700 | 623,700 | 581,200 | 526,100 | 518,300 | 501,200 | 502,900 | 456,200 | 420,200 | 395,100 | 413,600 | 401,300 | 380,800 | 444,900 | 467,900 | 443,400 |
| Inventory turnover | 3.07 | 3.17 | 2.87 | 2.60 | 2.71 | 2.99 | 3.30 | 3.67 | 3.65 | 3.66 | 3.51 | 3.62 | 3.72 | 3.92 | 4.23 | 4.49 | 5.82 | 4.94 | 4.22 | 4.40 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,948,200K ÷ $633,600K
= 3.07
Hologic Inc's inventory turnover has demonstrated fluctuations over the past 20 quarters. The inventory turnover ratio, which measures how many times a company's inventory is sold and replaced over a specific period, provides insights into the efficiency of inventory management.
Looking at the trend, we observe a general decline in inventory turnover from the first quarter of 2019 to the first quarter of 2020, followed by an increase up to the end of 2020. Subsequently, there was a gradual decrease in inventory turnover during 2021 and the first half of 2022. However, from the second half of 2022 to the end of 2023, the trend reversed, with inventory turnover showing an upward trajectory.
The highest inventory turnover was recorded in the fourth quarter of 2019, indicating efficient inventory management and sales activity during that period. On the other hand, the lowest turnover occurred in the first quarter of 2020, which may suggest challenges in selling inventory or an accumulation of excess inventory.
Overall, a higher inventory turnover ratio is generally preferred as it signifies that the company is selling its inventory quickly and efficiently. In contrast, a lower ratio may indicate overstocking, obsolete inventory, or slow sales, which can tie up capital and impact profitability. Monitoring inventory turnover over time helps assess operational efficiency and identify potential areas for improvement in inventory management practices.
Peer comparison
Dec 31, 2023
Dec 31, 2023