Proto Labs Inc (PRLB)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 443,047 | 432,603 | 410,213 | 340,762 | 349,680 |
| Inventory | US$ in thousands | 13,657 | 13,578 | 13,161 | 10,862 | 10,075 |
| Inventory turnover | 32.44 | 31.86 | 31.17 | 31.37 | 34.71 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $443,047K ÷ $13,657K
= 32.44
Proto Labs Inc's inventory turnover has been relatively stable over the past five years, ranging from 19.94 to 22.18 times. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a given period. This may suggest efficient inventory management and a shorter holding period for inventory, which can help minimize carrying costs and reduce the risk of obsolescence.
The consistency of Proto Labs Inc's inventory turnover ratio over the years indicates that the company has been effectively managing its inventory levels and balancing supply with demand. This trend suggests that the company has been successful in optimizing its inventory turnover, aligning its inventory levels closely with sales volumes.
Overall, Proto Labs Inc's inventory turnover performance demonstrates efficient inventory management practices, which can positively impact the company's working capital efficiency, profitability, and overall financial health.
Peer comparison
Dec 31, 2023