Penumbra Inc (PEN)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	439,620	375,879	311,926	272,208	222,237
Inventory	US$ in thousands	406,737	388,023	334,006	263,504	219,527
Inventory turnover		1.08	0.97	0.93	1.03	1.01

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $439,620K ÷ $406,737K
= 1.08

Based on the provided data, the inventory turnover of Penumbra Inc has fluctuated over the past five years. The inventory turnover ratio indicates how efficiently the company is managing its inventory. A higher ratio implies that the company is selling its inventory quickly, whereas a lower ratio may suggest inefficiencies or overstocking.

In 2020, the inventory turnover ratio was 1.01, indicating that the company turned over its inventory approximately once a year. Over the next few years, the ratio increased slightly to 1.03 in 2021 and peaked at 1.08 in 2024. This upward trend suggests improved inventory management and potentially faster sales cycles.

However, in 2022 and 2023, the inventory turnover ratio decreased to 0.93 and 0.97, respectively. These lower ratios may indicate slower sales, excess inventory, or challenges in managing inventory levels effectively during those years.

Overall, the fluctuation in Penumbra Inc's inventory turnover ratios over the past five years highlights the importance of closely monitoring inventory management practices to ensure optimal efficiency and profitability.