OSI Systems Inc (OSIS)

Inventory turnover

		Jun 30, 2025	Mar 31, 2025	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
Cost of revenue (ttm)	US$ in thousands	1,125,984	1,111,329	1,097,206	1,056,471	1,014,431	961,189	880,352	847,808	847,917	793,422	781,938	759,456	758,809	758,585	750,734	747,754	726,984	688,272	692,280	712,921
Inventory	US$ in thousands	407,174	438,954	441,795	456,030	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
Inventory turnover		2.77	2.53	2.48	2.32	2.55	2.17	1.97	2.02	2.51	2.13	2.16	2.10	2.27	2.20	2.25	2.33	2.47	2.43	2.60	2.79

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,125,984K ÷ $407,174K
= 2.77

The inventory turnover ratio of OSI Systems Inc. exhibits notable fluctuations over the analyzed period from September 30, 2020, to June 30, 2025. Initially, the ratio decreased from 2.79 in September 2020 to a low of 2.20 in March 2022, indicating a gradual decline in the efficiency with which inventory is being sold and replenished. This downward trend may suggest increased inventory levels relative to sales, potential slowdowns in inventory movement, or strategic changes in inventory management.

Subsequently, the inventory turnover shows periods of recovery and increase, reaching a peak of 2.77 by June 30, 2025. Notably, there is an observable upward trend beginning in March 2024, where the ratio rises from 2.17, reaching 2.55 in June 2024, and further increasing to 2.77 by the end of the period. This suggests an improvement in inventory management efficiency, possibly due to better sales performance, optimized inventory levels, or strategic shifts in operations.

Throughout the period, the ratio remains within a relatively narrow band, generally oscillating between approximately 2.00 and 2.80. The overall trend indicates periods of decline and subsequent recovery, with the most substantial improvements occurring in the latter part of the period analyzed. This pattern reflects varying operational dynamics, potentially influenced by market conditions, product mix, or internal management strategies aiming to optimize inventory turnover.