Innoviva Inc (INVA)

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	56,464	72,423	72,615	63,206	52,634	39,623	33,121	27,733	20,885	14,228	10,997	7,444	3,992	755	1,316	1,837	1,788	1,569	559	0
Inventory	US$ in thousands	33,725	34,236	36,664	37,437	40,737	40,515	46,846	49,653	55,897	70,807	3,953	-93,515	-110,711	0	-104,262	—	-93,931	—	0	0
Inventory turnover		1.67	2.12	1.98	1.69	1.29	0.98	0.71	0.56	0.37	0.20	2.78	—	—	—	—	—	—	—	—	—

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $56,464K ÷ $33,725K
= 1.67

The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times a company sells and replaces its inventory during a specific period. A higher inventory turnover ratio typically indicates better inventory management.

Based on the provided data for Innoviva Inc, the inventory turnover ratio was not available for analysis until the second quarter of 2022, when it was recorded at 2.78. This initial value suggests a relatively high rate of inventory turnover, indicating that the company was selling and replacing its inventory almost three times within that quarter.

Subsequently, the inventory turnover ratio fluctuated, showing a declining trend until the fourth quarter of 2024 when it dropped to 1.67. Despite the fluctuations, the inventory turnover ratio generally remained above 1, indicating that the company was effectively managing its inventory turnover throughout the period.

Overall, the trend in Innoviva Inc's inventory turnover ratio demonstrates fluctuations but generally shows a healthy level of inventory turnover. It is essential for the company to continue monitoring and optimizing its inventory management practices to ensure efficient operations and profitability.