Proto Labs Inc (PRLB)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 277,690 | 281,884 | 272,933 | 265,407 | 216,568 |
| Inventory | US$ in thousands | 12,305 | 13,657 | 13,578 | 13,161 | 10,862 |
| Inventory turnover | 22.57 | 20.64 | 20.10 | 20.17 | 19.94 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $277,690K ÷ $12,305K
= 22.57
Proto Labs Inc has displayed a consistent and efficient management of its inventory over the past five years. The inventory turnover ratio has shown an increasing trend, from 19.94 in December 2020 to 22.57 in December 2024. This indicates that the company has been able to sell its inventory more frequently in recent years.
A high inventory turnover ratio suggests that Proto Labs is effectively managing its inventory levels, minimizing carrying costs, and ensuring that its products do not remain idle for extended periods. This efficiency in inventory management can lead to improved cash flow and profitability for the company.
The steady increase in the inventory turnover ratio signifies that Proto Labs has been able to streamline its operations and maintain a strong demand for its products. It also reflects positively on the company's ability to adapt to changing market conditions and efficiently meet customer needs.
Overall, the upward trend in Proto Labs' inventory turnover ratio reflects a well-managed inventory system that supports the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024