Masimo Corporation (MASI)

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	2,149,400	1,707,200	1,688,300	1,656,400	1,718,500	1,775,900	1,806,600	1,960,700	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
Inventory	US$ in thousands	459,200	569,900	513,000	506,100	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
Inventory turnover		4.68	3.00	3.29	3.27	3.15	3.04	3.33	3.89	3.13	2.46	1.94	2.01	2.14	2.11	2.04	1.94	1.86	1.82	2.23	2.70

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,149,400K ÷ $459,200K
= 4.68

The inventory turnover ratio for Masimo Corporation has shown varying trends over the reporting periods provided. The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times a company sells and replaces its average inventory during a specific time frame.

From March 31, 2020, to December 31, 2024, we observe fluctuations in Masimo Corporation's inventory turnover ratio. The ratio ranged from a low of 1.82 on September 30, 2020, to a high of 4.68 on December 31, 2024. Generally, an increasing trend in the inventory turnover ratio is considered positive, indicating that the company is selling its inventory more quickly.

However, in interpreting the data for Masimo Corporation, we see a fluctuating pattern rather than a consistent upward or downward trend. There are periods of both increases and decreases in the inventory turnover ratio, suggesting potential changes in inventory management strategy, sales patterns, or market demand for Masimo's products.

Overall, a higher inventory turnover ratio is typically preferred as it indicates a more efficient use of inventory and potentially lower carrying costs. The company may need to closely monitor and analyze these fluctuations to ensure optimal inventory management and operational efficiency.