IDEXX Laboratories Inc (IDXX)

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	1,516,856	1,508,662	1,496,702	1,484,784	1,470,983	1,439,190	1,406,680	1,382,414	1,362,986	1,364,014	1,366,479	1,356,799	1,325,928	1,292,695	1,254,378	1,175,794	1,135,615	1,098,476	1,059,646	1,063,646
Inventory	US$ in thousands	381,877	389,804	379,958	390,599	380,282	393,974	395,141	391,011	367,823	354,975	332,565	301,638	269,030	258,484	241,392	225,559	209,873	217,597	229,377	211,644
Inventory turnover		3.97	3.87	3.94	3.80	3.87	3.65	3.56	3.54	3.71	3.84	4.11	4.50	4.93	5.00	5.20	5.21	5.41	5.05	4.62	5.03

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,516,856K ÷ $381,877K
= 3.97

IDEXX Laboratories Inc's inventory turnover ratio has exhibited a moderate decline over the analyzed period from March 31, 2020, to December 31, 2024. The ratio decreased gradually from 5.03 in March 2020 to 3.97 in December 2024. This indicates that the company's ability to convert its inventory into sales has weakened over time.

A high inventory turnover ratio implies that a company efficiently manages its inventory levels and is selling products quickly. Conversely, a decreasing inventory turnover may suggest excess inventory, slow sales, or ineffective inventory management practices.

The drop in IDEXX Laboratories Inc's inventory turnover ratio highlights a potential inventory management concern that may require further investigation and corrective actions to optimize inventory levels, streamline operations, and improve overall efficiency.