Penumbra Inc (PEN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	375,879	311,926	272,208	222,237	175,441
Inventory	US$ in thousands	388,023	334,006	263,504	219,527	152,992
Inventory turnover		0.97	0.93	1.03	1.01	1.15

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $375,879K ÷ $388,023K
= 0.97

Penumbra Inc's inventory turnover has shown a decline over the years, decreasing from 1.15 in 2019 to 0.97 in 2023. This indicates that the company is selling its inventory at a slower rate in recent years. A lower inventory turnover may suggest inefficiencies in managing and selling inventory, leading to potential issues such as excess inventory levels, obsolete stock, or challenges in meeting customer demand. It is important for Penumbra Inc to address these issues and improve its inventory turnover to optimize its working capital and operational efficiency.