Intuitive Surgical Inc (ISRG)

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	4,378,700	4,201,600	4,117,300	3,987,400	3,793,900	3,671,400	3,523,600	3,398,200	3,245,400	2,324,800	2,188,200	2,030,900	1,991,100	1,991,300	1,953,000	1,931,400	1,836,300	2,432,300	2,305,700	1,963,600
Inventory	US$ in thousands	1,220,600	1,147,500	1,005,200	946,600	893,200	837,100	724,000	653,000	587,100	584,900	569,700	576,800	601,500	662,900	645,500	620,300	595,500	579,600	512,800	468,300
Inventory turnover		3.59	3.66	4.10	4.21	4.25	4.39	4.87	5.20	5.53	3.97	3.84	3.52	3.31	3.00	3.03	3.11	3.08	4.20	4.50	4.19

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,378,700K ÷ $1,220,600K
= 3.59

Intuitive Surgical Inc's inventory turnover has shown a declining trend over the past quarters, from 2.82 in Q1 2022 to 1.96 in Q4 2023. This indicates that the company is taking longer to sell its inventory. A lower inventory turnover could suggest overstocking or difficulties in managing inventory levels efficiently. It may also point to potential issues with demand forecasting or sales performance. Intuitive Surgical Inc should closely monitor its inventory levels and implement strategies to improve inventory turnover, such as streamlining operations, adjusting purchasing practices, and enhancing inventory management systems.