NeoGenomics Inc (NEO)
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 | 377,370 | 370,591 | 367,290 | 358,856 | 347,039 | 340,955 | 331,201 | 325,301 | 321,832 | 320,427 | 314,639 | 302,247 | 297,269 | 285,338 | 282,616 | 272,853 | 258,555 | 246,956 | 229,417 | 223,193 |
| Inventory | US$ in thousands | 26,748 | 24,457 | 23,214 | 20,320 | 24,156 | 24,053 | 24,945 | 24,432 | 24,277 | 23,799 | 21,863 | 23,840 | 23,395 | 21,834 | 21,384 | 21,382 | 29,526 | 20,643 | 21,627 | 20,286 |
| Inventory turnover | 14.11 | 15.15 | 15.82 | 17.66 | 14.37 | 14.18 | 13.28 | 13.31 | 13.26 | 13.46 | 14.39 | 12.68 | 12.71 | 13.07 | 13.22 | 12.76 | 8.76 | 11.96 | 10.61 | 11.00 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $377,370K ÷ $26,748K
= 14.11
NeoGenomics Inc's inventory turnover has shown a fluctuating trend over the past few years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory in a given period.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged from a low of 8.76 to a high of 17.66. The trend indicates an overall increase in the efficiency of managing inventory, with a noticeable spike in the first quarter of 2024.
A higher inventory turnover ratio suggests that NeoGenomics Inc is selling its inventory more quickly, which could indicate strong sales or effective inventory management practices. However, a significantly high ratio may also imply low inventory levels, which could potentially lead to stockouts and lost sales opportunities.
It is important for NeoGenomics Inc to maintain a balance between having enough inventory to meet demand and keeping inventory levels optimized to avoid excess carrying costs. Monitoring and analyzing inventory turnover ratios can help the company evaluate its inventory management strategies and make informed decisions to improve operational efficiency and financial performance.