Pacira BioSciences, Inc. (PCRX)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	170,428	184,669	199,295	140,255	117,328
Inventory	US$ in thousands	125,282	104,353	96,063	98,550	64,650
Inventory turnover		1.36	1.77	2.07	1.42	1.81

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $170,428K ÷ $125,282K
= 1.36

Pacira BioSciences, Inc.'s inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced during a specific period.

In 2020, the inventory turnover stood at 1.81, indicating that the company turned over its inventory approximately 1.81 times during that year. The ratio decreased to 1.42 in 2021, suggesting a decrease in the efficiency of managing inventory relative to sales.

However, there was an improvement in 2022, with the inventory turnover ratio increasing to 2.07, which implies that Pacira BioSciences effectively managed its inventory levels to support sales activity during that period.

Subsequently, in 2023, the inventory turnover slightly decreased to 1.77, indicating a moderate decline in the efficiency of inventory management compared to the previous year.

Most recently, in 2024, the inventory turnover ratio dropped further to 1.36, which may suggest challenges in managing inventory efficiently relative to the sales volume.

Overall, the trend in Pacira BioSciences, Inc.'s inventory turnover indicates some variability in inventory management efficiency over the years, with potential implications for working capital and profitability. It would be beneficial for the company to assess the reasons behind these fluctuations and take appropriate measures to optimize inventory levels to support its operations effectively.