National HealthCare Corporation (NHC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 879,151 | 775,790 | 743,581 | 698,729 | 683,307 |
| Inventory | US$ in thousands | 9,039 | 7,386 | 7,088 | 8,582 | 8,781 |
| Inventory turnover | 97.26 | 105.04 | 104.91 | 81.42 | 77.82 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $879,151K ÷ $9,039K
= 97.26
Based on the provided inventory turnover data for National HealthCare Corporation, the company's efficiency in managing its inventory has shown a positive trend over the years. The inventory turnover ratio has increased steadily from 77.82 in December 2020 to 97.26 in December 2024. This indicates that the company is selling its inventory at a faster pace, which is generally a favorable sign as it suggests effective inventory management.
Specifically, the inventory turnover ratio of 81.42 in December 2021, 104.91 in December 2022, 105.04 in December 2023, and 97.26 in December 2024 reflects improvements in the company's ability to convert inventory into sales within a given period. A higher inventory turnover ratio implies that the company is selling goods more frequently compared to holding them in stock, which can lead to lower carrying costs and potentially higher profitability.
Overall, the increasing trend in inventory turnover for National HealthCare Corporation signifies efficient inventory management practices and a more streamlined supply chain process, which can contribute to enhanced operational performance and financial health. It is important for the company to continue monitoring and optimizing its inventory turnover to ensure continued efficiency and profitability in the long term.
Peer comparison
Dec 31, 2024