Myriad Genetics Inc (MYGN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Jun 30, 2020	Jun 30, 2019
Cost of revenue	US$ in thousands	747,600	584,300	614,100	681,800	628,500
Inventory	US$ in thousands	22,000	20,100	15,300	29,100	31,400
Inventory turnover		33.98	29.07	40.14	23.43	20.02

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $747,600K ÷ $22,000K
= 33.98

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a specific period. Higher inventory turnover ratios indicate that the company is selling its inventory quickly and efficiently.

In the case of Myriad Genetics, Inc., we can observe fluctuations in the inventory turnover ratio over the past five years. In 2023, the inventory turnover ratio was 10.74, which indicates that the company's inventory turned over approximately 10.74 times during the year. This represents an increase from the previous year's ratio of 10.05.

Comparing to 2021, where the ratio was 12.92, there has been a decrease in the inventory turnover efficiency in 2023. However, the ratio remains relatively high, suggesting that Myriad Genetics is managing its inventory efficiently.

Looking back to 2020 and 2019, both years had the same inventory turnover ratio of 6.40. This indicates that the company's inventory turnover improved significantly from those earlier years.

Overall, the trend in Myriad Genetics' inventory turnover ratio shows some variability but generally remains at a level that demonstrates effective management of its inventory. It is important for the company to continue monitoring and optimizing its inventory levels to ensure continued operational efficiency.