LeMaitre Vascular Inc (LMAT)

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	70,434	70,413	69,368	68,544	67,923	65,717	63,079	59,348	56,755	55,402	54,946	54,557	53,042	52,641	52,851	46,764	44,748	41,864	37,086	38,432
Inventory	US$ in thousands	55,942	65,021	56,659	54,493	52,333	56,187	53,831	53,779	50,271	47,711	47,192	46,664	46,104	44,326	44,751	45,071	45,115	45,639	46,340	40,580
Inventory turnover		1.26	1.08	1.22	1.26	1.30	1.17	1.17	1.10	1.13	1.16	1.16	1.17	1.15	1.19	1.18	1.04	0.99	0.92	0.80	0.95

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $70,434K ÷ $55,942K
= 1.26

LeMaitre Vascular Inc's inventory turnover has shown fluctuations over the past few years. The inventory turnover ratio indicates how efficiently the company manages its inventory by showing how many times it sells and replaces its inventory in a given period.

From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged between 0.80 and 1.30. The ratio increased from 0.95 in March 2020 to a peak of 1.30 in December 2023, before trending downwards to 1.26 by June 2024.

A higher inventory turnover ratio typically suggests that the company is managing its inventory effectively and efficiently. It indicates that the company is selling its products quickly and replenishing its stock in a timely manner.

However, it's important to note that a very high inventory turnover ratio could also indicate potential issues such as stockouts or lost sales due to inadequate inventory levels. On the other hand, a low inventory turnover ratio may suggest overstocking or slow-moving inventory, which ties up capital and can lead to obsolescence.

In analyzing LeMaitre Vascular Inc's inventory turnover, it appears that there have been some fluctuations, but overall, the company has managed to maintain a reasonable turnover ratio, indicating adequate inventory management practices.