Lantheus Holdings Inc (LNTH)

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	535,687	517,252	500,639	481,375	586,886	558,751	530,615	497,256	353,358	329,017	296,562	265,844	237,513	221,360	214,240	199,426	200,649	189,929	181,832	182,802
Inventory	US$ in thousands	68,025	70,835	70,516	69,758	64,029	56,462	51,801	42,156	35,475	34,793	33,958	34,249	35,129	33,949	31,719	30,357	35,744	37,623	35,334	30,814
Inventory turnover		7.87	7.30	7.10	6.90	9.17	9.90	10.24	11.80	9.96	9.46	8.73	7.76	6.76	6.52	6.75	6.57	5.61	5.05	5.15	5.93

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $535,687K ÷ $68,025K
= 7.87

Lantheus Holdings Inc's inventory turnover has shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio, which measures how efficiently the company manages its inventory by indicating how many times inventory is sold and replaced within a specific period, increased from 5.93 in March 2020 to 7.87 in December 2024.

The steady increase in the inventory turnover ratio indicates that Lantheus Holdings Inc has been able to sell its inventory more quickly over time. This improvement suggests better inventory management practices, such as efficient inventory planning, effective procurement strategies, and streamlined production processes.

The peak in inventory turnover was witnessed on March 31, 2024, with a ratio of 11.80, indicating that the company was selling its inventory nearly 12 times over during that period. This high turnover rate potentially signifies strong sales performance and effective inventory control during that quarter.

Although there was a slight decrease in the inventory turnover ratio in the subsequent quarters from June 30, 2024, to December 31, 2024, the overall trend reflects positively on Lantheus Holdings Inc's ability to efficiently manage its inventory levels. It is important for the company to maintain this upward trend in inventory turnover to ensure optimal utilization of resources and to prevent excess inventory buildup, which can tie up capital and increase holding costs.