Pacira Pharmaceuticals Inc (PCRX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	184,669	199,295	140,255	117,328	106,712
Inventory	US$ in thousands	104,353	96,063	98,550	64,650	58,296
Inventory turnover		1.77	2.07	1.42	1.81	1.83

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $184,669K ÷ $104,353K
= 1.77

The inventory turnover ratio of Pacira BioSciences Inc has shown some fluctuations over the past five years. The ratio decreased from 1.83 in 2019 to 1.81 in 2020, before dropping further to 1.42 in 2021. However, there was an improvement in 2022 with the ratio increasing to 2.07 before slightly declining to 1.77 in 2023.

A low inventory turnover ratio may indicate that Pacira BioSciences Inc is carrying too much inventory relative to its sales, which could lead to higher storage costs and obsolete inventory. Conversely, a high inventory turnover ratio may suggest efficient inventory management and a quick conversion of inventory into sales.

It is important for the company to closely monitor its inventory levels and turnover ratios to ensure optimal operational efficiency and financial performance. Further analysis of factors influencing inventory turnover, such as industry trends, demand fluctuations, and production efficiency, could provide additional insights into Pacira BioSciences Inc's inventory management practices.