ICU Medical Inc (ICUI)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,558,544	1,586,183	1,571,295	1,539,251	1,533,168	1,506,051	1,548,121	1,584,549	1,582,236	1,392,202	1,189,010	993,747	824,818	812,360	808,734	807,681	809,507	810,313	794,589	805,907
Inventory	US$ in thousands	584,676	692,038	682,870	693,006	709,360	759,622	775,269	747,965	696,009	625,268	583,050	536,314	290,235	291,601	299,610	300,086	314,928	321,961	322,766	311,604
Inventory turnover		2.67	2.29	2.30	2.22	2.16	1.98	2.00	2.12	2.27	2.23	2.04	1.85	2.84	2.79	2.70	2.69	2.57	2.52	2.46	2.59

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,558,544K ÷ $584,676K
= 2.67

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by assessing the number of times it sells and replaces its inventory during a specific period.

For ICU Medical Inc, the inventory turnover has shown some fluctuation over the past few years. The ratios have ranged from a low of 1.85 on March 31, 2022, to a high of 2.84 on December 31, 2021. Generally, an increasing trend in inventory turnover is seen as a positive indicator as it suggests that the company is selling its inventory more frequently.

Overall, ICU Medical's inventory turnover has been relatively stable, with ratios consistently above 2. This indicates that the company is effectively managing its inventory, ensuring that it is neither overstocked nor understocked. However, the slight decrease in inventory turnover in the most recent period, dropping to 2.29 on December 31, 2024, may warrant further investigation to understand the reasons behind this decline and whether it signals a potential issue in inventory management efficiency.