NeoGenomics Inc (NEO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 708,906 | 671,801 | 604,370 | 476,115 | 407,683 |
| Inventory | US$ in thousands | 24,156 | 24,277 | 23,395 | 29,526 | 14,405 |
| Inventory turnover | 29.35 | 27.67 | 25.83 | 16.13 | 28.30 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $708,906K ÷ $24,156K
= 29.35
Neogenomics Inc. has demonstrated a consistent level of efficiency in managing its inventory turnover over the past five years. The inventory turnover ratio measures how many times the company's inventory is sold and replaced within a given period.
In 2023, the inventory turnover ratio increased to 14.37 times, reflecting an improvement from 13.26 times in 2022 and 12.71 times in 2021. This increase indicates that the company is selling and replenishing its inventory at a faster rate, which can be a positive sign of efficient inventory management and strong sales performance.
Comparing to 2020 and 2019, where the ratios were 8.76 times and 14.72 times respectively, the company's inventory turnover has been more consistent and stable in recent years. A high inventory turnover ratio generally suggests that a company is effectively managing its inventory levels, minimizing excess inventory costs, and generating sales efficiently.
Overall, the increasing trend in Neogenomics Inc.'s inventory turnover ratio signals effective inventory management practices and a healthy operational performance in recent years.