Penumbra Inc (PEN)

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	375,879	360,981	346,104	325,775	311,926	307,701	299,555	290,818	272,208	266,229	256,177	230,784	222,237	196,787	180,138	180,232	175,441	170,387	163,677	160,790
Inventory	US$ in thousands	388,023	374,245	358,770	344,042	334,006	320,304	295,883	274,349	263,504	258,316	254,977	245,321	219,527	191,547	183,442	166,152	152,992	140,359	132,735	121,691
Inventory turnover		0.97	0.96	0.96	0.95	0.93	0.96	1.01	1.06	1.03	1.03	1.00	0.94	1.01	1.03	0.98	1.08	1.15	1.21	1.23	1.32

December 31, 2023 calculation

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

The inventory turnover ratio for Penumbra Inc has remained relatively stable over the past eight quarters, ranging between 0.93 and 1.06. This indicates the company's efficiency in managing its inventory levels and converting them into sales.

A higher inventory turnover ratio typically suggests that a company is selling its inventory quickly and efficiently, which can be positive for cash flow and profitability. On the other hand, a lower ratio may indicate excess inventory or potential issues with sales and demand.

In the case of Penumbra Inc, the ratio hovering around 1.0 suggests a moderate turnover rate, which could be considered healthy for the business. However, it is essential for the company to monitor fluctuations in this ratio to ensure optimal inventory management and operational efficiency.