Masimo Corporation (MASI)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,718,600	1,634,400	430,753	400,744	308,665
Inventory	US$ in thousands	545,000	501,000	201,400	215,952	115,871
Inventory turnover		3.15	3.26	2.14	1.86	2.66

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,718,600K ÷ $545,000K
= 3.15

Masimo Corporation's inventory turnover has exhibited fluctuating trends over the past five years. The ratio was 3.15 in 2023, slightly lower than the previous year's 3.26. This implies that the company's inventory turned over approximately 3.15 times during the year. Compared to 2021, where the inventory turnover was 2.14, there was an improvement in 2023. However, the inventory turnover was higher in 2020 at 1.86. In 2019, the inventory turnover was 2.66, indicating an increase in efficiency compared to 2023. Overall, Masimo Corporation's inventory turnover has varied over the years, suggesting changes in inventory management practices and sales efficiency.