Pacira BioSciences, Inc. (PCRX)

Inventory turnover

		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	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	199,072	221,200	222,086	211,709	198,991	198,893	209,821	212,241	199,295	176,386	160,359	144,980	140,255	136,546	131,888	118,945	117,328	113,934	106,245	109,141
Inventory	US$ in thousands	125,282	111,865	103,438	96,782	104,353	96,520	92,130	92,977	96,063	96,799	100,588	103,662	98,550	67,209	65,264	64,606	64,650	68,542	66,690	59,666
Inventory turnover		1.59	1.98	2.15	2.19	1.91	2.06	2.28	2.28	2.07	1.82	1.59	1.40	1.42	2.03	2.02	1.84	1.81	1.66	1.59	1.83

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $199,072K ÷ $125,282K
= 1.59

Pacira BioSciences, Inc.'s inventory turnover ratio has shown some fluctuations over the periods indicated. Inventory turnover measures the efficiency with which a company manages its inventory by calculating the number of times the company sells and replaces its inventory during a specific period.

From March 31, 2020, to December 31, 2024, Pacira BioSciences, Inc.'s inventory turnover ranged from a low of 1.40 to a high of 2.28. A lower inventory turnover ratio indicates that the company is holding onto its inventory for a longer period before selling it, which may suggest poor inventory management or slow sales. On the other hand, a higher inventory turnover ratio indicates that the company is efficiently managing its inventory, selling products quickly, and restocking efficiently.

Overall, Pacira BioSciences, Inc.'s inventory turnover ratio has shown an increasing trend from 1.83 on March 31, 2020, to 2.19 on March 31, 2024, except for some minor fluctuations. The company's ability to improve its inventory turnover ratio over time can be a positive indicator of operational efficiency and effective inventory management practices.

However, it is essential to consider industry benchmarks and specific business circumstances while interpreting inventory turnover ratios. Comparing Pacira BioSciences, Inc.'s inventory turnover ratio with industry peers can provide further insights into its inventory management performance.