Masimo Corporation (MASI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,145,400 | 1,718,600 | 1,634,400 | 430,753 | 400,744 |
| Inventory | US$ in thousands | 459,200 | 545,000 | 501,000 | 201,400 | 215,952 |
| Inventory turnover | 4.67 | 3.15 | 3.26 | 2.14 | 1.86 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,145,400K ÷ $459,200K
= 4.67
The inventory turnover for Masimo Corporation has shown a consistent upward trend over the past five years, increasing from 1.86 in December 2020 to 4.67 in December 2024. This indicates that the company is selling its inventory more efficiently as time progresses. A higher inventory turnover ratio suggests that Masimo is managing its inventory levels effectively, possibly by reducing excess inventory and improving inventory control processes. This improvement may lead to lower carrying costs and potentially higher profitability due to decreasing obsolete inventory. Overall, the rising inventory turnover ratio reflects positively on Masimo's operational efficiency and management of its inventory.
Peer comparison
Dec 31, 2024