Pacira Pharmaceuticals Inc (PCRX)

Inventory turnover

		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	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	184,669	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	106,712	98,787	95,548	91,263
Inventory	US$ in thousands	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	58,296	60,238	52,697	47,028
Inventory turnover		1.77	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	1.83	1.64	1.81	1.94

December 31, 2023 calculation

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

Pacira BioSciences Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 1.40 to 2.28. The inventory turnover ratio measures how efficiently the company manages its inventory by showing how many times the inventory is sold and replaced over a certain period. A higher inventory turnover ratio indicates more efficient inventory management, as the company is selling its inventory more quickly.

In this case, the trend shows that Pacira BioSciences Inc has generally improved its efficiency in managing inventory from Q1 2022 to Q3 2023, with the ratio increasing from 1.40 to 2.06. This could suggest better control over inventory levels, reducing carrying costs and potential obsolescence. However, the slight decline in Q4 2023 to 1.77 may warrant further investigation to understand the reasons behind the dip.

Overall, the company's inventory turnover ratios indicate a reasonably efficient management of inventory, although fluctuations in the ratio should be closely monitored to ensure optimal inventory management practices are maintained.