Merit Medical Systems Inc (MMSI)

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	1,182,567	1,152,169	1,128,443	1,124,014	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
Inventory	US$ in thousands	306,063	310,527	298,224	302,733	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
Inventory turnover		3.86	3.71	3.78	3.71	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,182,567K ÷ $306,063K
= 3.86

The inventory turnover of Merit Medical Systems Inc has shown fluctuations over the past few years. The company's inventory turnover ratio ranged between 3.46 and 5.15 during the period from June 30, 2020 to June 30, 2024.

A general trend in the data indicates that the inventory turnover ratio initially increased from June 2020 to June 2021, reaching its peak at 5.15. However, the ratio then started to decline gradually, dropping to 3.86 by December 31, 2024.

Overall, a decreasing trend in inventory turnover could suggest that the company is taking longer to sell its inventory, which may have implications for its working capital management and liquidity. It is essential for Merit Medical Systems Inc to closely monitor its inventory turnover and implement strategies to enhance inventory management efficiency and turnover rates to optimize its operations and financial performance in the future.