Integra LifeSciences Holdings (IART)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,449,370	1,335,850	1,374,810	1,274,460	1,285,670
Inventory	US$ in thousands	389,608	324,583	317,386	310,117	316,054
Inventory turnover		3.72	4.12	4.33	4.11	4.07

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,449,370K ÷ $389,608K
= 3.72

Integra Lifesciences Holdings Corp's inventory turnover has fluctuated over the past five years. The company's inventory turnover ratio was 1.69 in 2023, 1.81 in 2022, 1.88 in 2021, 1.68 in 2020, and 1.79 in 2019. The decreasing trend from 2021 to 2020, followed by a slight recovery in 2022, indicates that the company may have been managing its inventory less efficiently in 2020 than in previous years.

A lower inventory turnover ratio suggests that the company is holding onto its inventory for a longer period before selling it. This could tie up working capital and increase carrying costs. It may also indicate potential issues with demand forecasting, production inefficiencies, or slow-moving inventory.

Conversely, a higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be a sign of efficient inventory management, strong sales performance, and effective demand forecasting.

Overall, Integra Lifesciences Holdings Corp should closely monitor its inventory turnover ratio to ensure optimal inventory management practices and strive for consistency and improvement over time.