Intuitive Surgical Inc (ISRG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,378,700 | 3,793,900 | 3,245,500 | 2,763,300 | 2,589,700 |
| Inventory | US$ in thousands | 1,220,600 | 893,200 | 587,100 | 601,500 | 595,500 |
| Inventory turnover | 3.59 | 4.25 | 5.53 | 4.59 | 4.35 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,378,700K ÷ $1,220,600K
= 3.59
Intuitive Surgical Inc's inventory turnover has shown a fluctuating trend over the past five years. The company's inventory turnover ratio decreased from 2.30 in 2019 to 1.96 in 2023, indicating a decrease in the efficiency of converting inventory into sales. However, it's important to note that in 2021, the inventory turnover ratio reached its highest point at 2.98, showing a significant improvement in inventory management efficiency. Overall, Intuitive Surgical Inc needs to closely monitor its inventory turnover to ensure optimal utilization of inventory resources and efficient management of working capital.
Peer comparison
Dec 31, 2023