Merit Medical Systems Inc (MMSI)

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	1,103,827	1,073,698	1,058,857	1,034,469	1,025,208	1,015,554	1,000,592	1,007,710	986,060	997,267	1,000,960	974,237	980,981	995,421	990,265	991,374	980,668	931,139	884,247	849,550
Inventory	US$ in thousands	303,871	303,923	305,943	289,581	265,991	246,660	233,154	231,451	221,922	208,081	194,524	200,308	198,019	209,109	221,417	227,776	225,698	216,766	202,994	198,922
Inventory turnover		3.63	3.53	3.46	3.57	3.85	4.12	4.29	4.35	4.44	4.79	5.15	4.86	4.95	4.76	4.47	4.35	4.35	4.30	4.36	4.27

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,103,827K ÷ $303,871K
= 3.63

Merit Medical Systems, Inc.'s inventory turnover has displayed a slight downward trend over the past few quarters, from 2.62 in Q2 2022 to 2.22 in Q4 2023. This indicates that the company is taking longer to sell its inventory, which could potentially lead to higher holding costs and reduced liquidity. It is essential for the company to monitor and manage its inventory levels efficiently to improve turnover ratios and optimize cash flow. Further analysis of the underlying factors impacting inventory turnover, such as sales trends, production efficiency, and inventory management practices, would be beneficial to pinpoint areas for improvement.