Merit Medical Systems Inc (MMSI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,182,870 | 1,103,830 | 1,025,110 | 986,060 | 962,781 |
| Inventory | US$ in thousands | 306,063 | 303,871 | 265,991 | 221,922 | 198,019 |
| Inventory turnover | 3.86 | 3.63 | 3.85 | 4.44 | 4.86 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,182,870K ÷ $306,063K
= 3.86
The inventory turnover of Merit Medical Systems Inc has shown a decreasing trend over the past five years, starting at 4.86 in December 2020 and dropping to 3.86 by December 2024. This indicates that the company is taking longer to sell its inventory, which may suggest inefficiencies in managing its inventory levels or challenges in converting inventory into sales. A lower inventory turnover ratio could also imply potential risks such as obsolete inventory or overstocking. Merit Medical Systems Inc may need to reassess its inventory management strategies to improve this ratio and optimize its working capital efficiency.
Peer comparison
Dec 31, 2024