Neurocrine Biosciences Inc (NBIX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	930,800	776,400	583,300	433,300	354,062
Inventory	US$ in thousands	38,300	35,100	30,500	28,000	17,300
Inventory turnover		24.30	22.12	19.12	15.48	20.47

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $930,800K ÷ $38,300K
= 24.30

Neurocrine Biosciences, Inc.'s inventory turnover has shown a fluctuating trend over the past five years. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring the number of times inventory is sold and replaced within a given period.

In 2023, Neurocrine Biosciences, Inc. achieved an inventory turnover of 1.04, indicating that the company turned over its inventory approximately 1.04 times during the year. This is an improvement from the previous year, where the inventory turnover was 0.66. The increase in inventory turnover can be seen as a positive sign, suggesting that the company may be managing its inventory more effectively and selling its products more rapidly.

Comparing the 2023 inventory turnover to previous years, the company's performance in managing inventory has been relatively low in 2021 (0.47), 2020 (0.36), and 2019 (0.43). A low inventory turnover ratio can imply overstocking, obsolete inventory, or inefficient sales processes.

Overall, the increasing trend in Neurocrine Biosciences, Inc.'s inventory turnover from 2019 to 2023 indicates a potential improvement in inventory management efficiency. However, further analysis and comparison with industry benchmarks are necessary to gain deeper insights into the company's inventory management practices and performance.