Intuitive Surgical Inc (ISRG)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	4,874,600	4,378,700	3,793,900	3,245,500	2,763,300
Inventory	US$ in thousands	1,487,200	1,220,600	893,200	587,100	601,500
Inventory turnover		3.28	3.59	4.25	5.53	4.59

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,874,600K ÷ $1,487,200K
= 3.28

Intuitive Surgical Inc's inventory turnover has shown some fluctuations over the past five years. In December 2020, the inventory turnover was 4.59, indicating that the company sold and replaced its inventory approximately 4.59 times during that year. The inventory turnover improved to 5.53 by December 2021, suggesting a more efficient management of inventory.

However, by December 2022, the inventory turnover declined to 4.25, indicating a potential slowdown in the rate at which inventory was being sold and replaced. This trend continued as the inventory turnover decreased to 3.59 by December 2023 and further to 3.28 by December 2024.

The declining inventory turnover values suggest that Intuitive Surgical Inc may be experiencing challenges in optimizing its inventory management processes or facing slower sales relative to its inventory levels. Further analysis of the company's operations and market conditions may be necessary to understand the underlying factors contributing to the decreasing inventory turnover trend.