IDEXX Laboratories Inc (IDXX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,470,980	1,362,990	1,325,930	1,135,620	1,041,360
Inventory	US$ in thousands	380,282	367,823	269,030	209,873	195,019
Inventory turnover		3.87	3.71	4.93	5.41	5.34

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,470,980K ÷ $380,282K
= 3.87

Idexx Laboratories, Inc.'s inventory turnover has fluctuated over the past five years, with a decreasing trend in recent years. The company's inventory turnover ratio was 3.87 in 2023, slightly higher than the previous year's 3.71. However, compared to 2021 and 2022, where the ratios were 4.93 and 5.41 respectively, the turnover has decreased. In 2019, the inventory turnover was 5.34, indicating a higher efficiency in managing inventory compared to recent years.

A decreasing trend in inventory turnover may suggest that Idexx Laboratories is taking longer to sell its inventory, which could potentially lead to increased carrying costs and obsolescence risks. The company may need to reassess its inventory management strategies to improve efficiency and align with industry benchmarks.

It is important for investors and stakeholders to monitor inventory turnover consistently as it can provide insights into a company's operational efficiency and liquidity management. A lower inventory turnover ratio may indicate potential issues in sales, production, or inventory management that could impact the company's overall financial performance.