OSI Systems Inc (OSIS)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	1,299,882	1,236,867	1,152,701	1,101,297	1,094,943	1,038,353	1,030,653	1,008,478	1,011,412	1,013,233	1,004,901	1,004,027	993,035	949,277	965,888	992,463	1,018,149	1,047,561	1,052,630	1,054,881
Inventory	US$ in thousands	397,939	442,797	445,818	418,797	338,008	371,795	361,376	361,949	333,907	344,643	334,242	320,673	294,208	283,523	266,190	255,434	241,226	241,317	252,535	268,761
Inventory turnover		3.27	2.79	2.59	2.63	3.24	2.79	2.85	2.79	3.03	2.94	3.01	3.13	3.38	3.35	3.63	3.89	4.22	4.34	4.17	3.92

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,299,882K ÷ $397,939K
= 3.27

OSI Systems Inc's inventory turnover ratio has fluctuated over the period analyzed. The inventory turnover ratio measures how many times a company sells and replaces its inventory in a given period. A higher ratio is generally preferred as it indicates that the company is selling its inventory quickly, which can lead to higher liquidity and lower carrying costs.

Looking at the data provided, we can see that OSI Systems Inc's inventory turnover ratio has varied between 2.59 and 4.34 over the past 20 quarters. The highest inventory turnover ratio of 4.34 was observed in September 2020, indicating that the company efficiently managed its inventory during that quarter. On the other hand, the lowest inventory turnover ratio of 2.59 was recorded in December 2023, suggesting a slower turnover of inventory during that period.

Overall, the trend indicates that OSI Systems Inc has generally maintained a moderate to high level of inventory turnover, with some fluctuations over time. It is important for the company to continue monitoring and managing its inventory effectively to ensure optimal utilization of resources and maintain healthy liquidity levels.