Lantheus Holdings Inc (LNTH)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,039,700	622,241	495,443	342,810	289,036
Inventory	US$ in thousands	64,029	35,475	35,129	35,744	29,180
Inventory turnover		16.24	17.54	14.10	9.59	9.91

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,039,700K ÷ $64,029K
= 16.24

Lantheus Holdings Inc has demonstrated a consistent trend of improving its inventory turnover ratio over the past five years, indicating efficient management of its inventory levels. The company was able to turn over its inventory approximately 9.17 times in 2023, down slightly from 9.96 times in 2022. This decline may suggest a slight decrease in the efficiency of converting inventory into sales within the year. However, both figures are significantly higher compared to 2019 and 2020 when the inventory turnover ratios were 5.91 and 5.61 respectively, showing a significant improvement in inventory management efficiency over the years.

Overall, the upward trajectory of Lantheus Holdings Inc's inventory turnover ratio reflects positively on the company's operational effectiveness in managing its supply chain and inventory levels. It indicates a strong ability to convert inventory into sales, minimize holding costs, and optimize working capital management.