Integer Holdings Corp (ITGR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,420,460 | 1,238,880 | 1,074,240 | 942,859 | 1,083,430 |
| Inventory | US$ in thousands | 239,716 | 208,766 | 155,699 | 149,323 | 167,256 |
| Inventory turnover | 5.93 | 5.93 | 6.90 | 6.31 | 6.48 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,420,460K ÷ $239,716K
= 5.93
Integer Holdings Corp's inventory turnover ratio has fluctuated over the past five years. The ratio was 5.40 in 2019, decreased to 5.28 in 2020, further declined to 4.87 in 2022, and then increased to 4.92 in 2023.
A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which is generally favorable as it suggests efficient management of inventory levels. However, the decreasing trend from 2019 to 2022 may indicate challenges in managing inventory effectively or slower sales growth during these years.
The slight increase in inventory turnover from 2022 to 2023 is a positive sign as it suggests a potential improvement in inventory management efficiency. It would be important for Integer Holdings Corp to continue monitoring and optimizing its inventory turnover ratio to ensure the effective utilization of its inventory resources.
Peer comparison
Dec 31, 2023