Integra LifeSciences Holdings (IART)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,619,700	1,449,370	1,335,850	1,374,810	1,274,460
Inventory	US$ in thousands	429,090	389,608	324,583	317,386	310,117
Inventory turnover		3.77	3.72	4.12	4.33	4.11

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,619,700K ÷ $429,090K
= 3.77

Integra LifeSciences Holdings' inventory turnover has shown fluctuations over the five-year period from 2020 to 2024. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory during a certain period.

In 2020, the inventory turnover was 4.11 times, indicating that the company sold and replaced its inventory approximately 4.11 times during that year. This ratio increased slightly to 4.33 times in 2021, suggesting an improvement in inventory management efficiency.

However, in 2022, the inventory turnover dropped to 4.12 times before experiencing a more significant decline to 3.72 times in 2023. This decrease may be a cause for concern as it indicates that the company is selling and replacing its inventory less frequently, potentially leading to excess inventory levels or liquidity issues.

In 2024, the inventory turnover improved slightly to 3.77 times, but it remained below the levels seen in 2021 and 2022. It is important for Integra LifeSciences Holdings to closely monitor its inventory turnover and implement strategies to better manage its inventory levels to ensure optimal operational efficiency and financial performance.