NeoGenomics Inc (NEO)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	708,318	700,255	689,851	676,068	580,764	800,621	705,252	609,348	604,370	502,898	500,176	490,413	476,115	442,645	425,106	418,882	407,683	324,442	307,377	291,846
Inventory	US$ in thousands	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	14,405	12,632	8,733	9,670
Inventory turnover		29.32	29.11	27.65	27.67	23.92	33.64	32.26	25.56	25.83	23.03	23.39	22.94	16.13	21.44	19.66	20.65	28.30	25.68	35.20	30.18

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $708,318K ÷ $24,156K
= 29.32

Neogenomics Inc. has shown consistent inventory turnover ratios over the past 8 quarters, ranging from 12.68 to 14.39. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the company's inventory is sold and replaced over a specific period.

With an average inventory turnover of approximately 13.66 over the eight quarters, Neogenomics Inc. is demonstrating effective management of inventory levels. A high inventory turnover ratio indicates that the company is selling its products quickly, minimizing the risk of obsolete inventory and improving cash flow.

Neogenomics Inc. has maintained a relatively stable inventory turnover ratio, implying a consistent demand for its products and efficient inventory management practices. This stability suggests that the company has a good grasp of its inventory needs and is effectively balancing inventory levels to meet customer demand while avoiding excess stock.

Overall, the trend in Neogenomics Inc.'s inventory turnover ratio indicates a healthy operational performance concerning inventory management, which is essential for maintaining liquidity and profitability in the long term.