Protagonist Therapeutics Inc (PTGX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	33,491	31,739	27,196	18,638	15,749
Inventory	US$ in thousands	-10,332	-94	8,503	3,976	4,795
Inventory turnover		—	—	3.20	4.69	3.28

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $33,491K ÷ $-10,332K
= —

The inventory turnover ratio for Protagonist Therapeutics Inc has shown variability over the past five years. In 2021, the company's inventory turnover was 3.20 times, indicating that its inventory was sold and replaced approximately 3.20 times during the year. This ratio increased in 2022 to 4.69 times, suggesting that the company managed its inventory more efficiently that year. However, in 2019 and 2020, the inventory turnover was 3.28 times and 3.28 times, respectively.

The fluctuation in inventory turnover may reflect changes in the company's sales volume, inventory management practices, or industry dynamics. A higher inventory turnover ratio is generally preferred as it signifies that the company is selling its inventory more quickly and efficiently. On the other hand, a lower ratio may indicate excess or obsolete inventory, which can tie up capital and lead to storage costs.

Overall, it would be important for Protagonist Therapeutics Inc to closely monitor and manage its inventory turnover to optimize its working capital and operational efficiency. Further analysis of the underlying factors affecting inventory turnover would be beneficial in identifying potential areas for improvement.