Innoviva Inc (INVA)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	120,016	108,730	102,904	86,186	69,138	50,708	24,247	16,693	16,187	18,544	18,938	17,306	13,883	10,745	12,453	14,204	14,656	14,962	14,019	14,083
Inventory	US$ in thousands	40,737	40,515	46,846	49,653	55,897	70,807	3,953	-93,515	0	—	-104,262	—	-93,931	—	—	—	-79,427	—	-67,563	—
Inventory turnover		2.95	2.68	2.20	1.74	1.24	0.72	6.13	—	—	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $120,016K ÷ $40,737K
= 2.95

Innoviva Inc's inventory turnover has shown varying trends over the last eight quarters, reflecting the efficiency with which the company is managing its inventory. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period, indicating the company's ability to convert inventory into sales.

In Q1 2022, the inventory turnover ratio was 0.49, which means that Innoviva Inc's inventory was turning over approximately 0.49 times during that quarter. This ratio increased in the following quarters, reaching its highest of 1.05 in Q4 2023. This significant improvement suggests that the company has been more efficient in managing its inventory and converting it into sales.

The increasing trend in the inventory turnover ratio indicates that Innoviva Inc has been able to better control its inventory levels, reduce excess inventory, and improve its sales performance. This can be attributed to effective inventory management practices, streamlined operations, and potentially increasing demand for the company's products.

Overall, the upward trend in Innoviva Inc's inventory turnover ratio from Q1 2022 to Q4 2023 is a positive sign of the company's operational efficiency and effective inventory management, which can lead to improved financial performance and profitability in the long run.