OSI Systems Inc (OSIS)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	1,307,180	1,100,580	1,015,840	1,000,310	1,024,710
Inventory	US$ in thousands	397,939	338,008	333,907	294,208	241,226
Inventory turnover		3.28	3.26	3.04	3.40	4.25

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,307,180K ÷ $397,939K
= 3.28

The inventory turnover of OSI Systems Inc has shown fluctuations over the past five years. The ratio decreased from 4.25 in Jun 30, 2020 to 3.40 in Jun 30, 2021, indicating a slowdown in inventory turnover. However, there was a slight improvement in efficiency with inventory turnover increasing to 3.26 in Jun 30, 2023, followed by a marginal increase to 3.28 in Jun 30, 2024.

Overall, OSI Systems Inc has maintained a relatively stable inventory turnover ratio in the range of 3.04 to 4.25 over the five-year period. A lower inventory turnover ratio suggests that the company may be carrying excess inventory, tying up capital. To improve efficiency, the company could focus on managing inventory levels more effectively to optimize working capital and cash flow.