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.
Peer comparison
Dec 31, 2023
Dec 31, 2023