Masimo Corporation (MASI)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,507,900	1,565,300	1,596,000	1,750,100	1,569,441	1,218,223	870,337	428,255	430,882	426,328	421,700	418,851	400,679	373,138	346,695	312,639	308,665	302,879	299,966	294,127
Inventory	US$ in thousands	545,000	584,600	542,600	503,500	501,000	495,400	449,200	213,485	201,400	202,328	206,607	216,142	215,952	204,779	155,145	115,982	115,871	109,689	98,785	93,259
Inventory turnover		2.77	2.68	2.94	3.48	3.13	2.46	1.94	2.01	2.14	2.11	2.04	1.94	1.86	1.82	2.23	2.70	2.66	2.76	3.04	3.15

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,507,900K ÷ $545,000K
= 2.77

The inventory turnover ratio of Masimo Corporation has fluctuated over the past five years, ranging from a low of 1.82 to a high of 3.48. The overall trend in inventory turnover has been somewhat inconsistent, with periods of improvement followed by slight declines.

A higher inventory turnover ratio indicates that Masimo is selling its inventory more efficiently and quickly, while a lower ratio suggests slower sales turnover. The most recent ratio of 2.77 as of December 31, 2023, indicates that the company is currently able to sell and replace its inventory approximately 2.77 times during the year.

It is important to note that inventory turnover ratios can vary widely between industries, and comparison with industry averages can provide additional context for evaluating Masimo's performance in managing its inventory. Further analysis of the company's inventory management practices and strategy may be warranted to fully understand the factors driving these fluctuations in inventory turnover.