Regeneron Pharmaceuticals Inc (REGN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,840,300	2,389,100	2,296,400	1,399,600	1,923,000
Inventory	US$ in thousands	2,580,500	2,401,900	1,951,300	1,916,600	1,415,500
Inventory turnover		1.10	0.99	1.18	0.73	1.36

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,840,300K ÷ $2,580,500K
= 1.10

Regeneron Pharmaceuticals, Inc.'s inventory turnover has fluctuated over the past five years, indicating varying efficiency in managing its inventory levels. The inventory turnover ratio declined from 0.26 in 2019 to 0.26 in 2020, suggesting a stagnant level of inventory management during that period.

However, there was a notable improvement in 2021, with the inventory turnover ratio increasing to 0.91, indicating that the company was more efficient in selling and replacing its inventory that year.

Subsequently, the inventory turnover ratio dropped to 0.33 in 2022 and further decreased to 0.36 in 2023, signaling potential challenges in efficiently managing inventory levels in more recent years.

Overall, a low inventory turnover ratio could indicate overstocking, obsolete inventory, or poor sales, while a high ratio suggests efficient inventory management and strong sales performance. The trend in Regeneron Pharmaceuticals, Inc.'s inventory turnover highlights the importance of closely monitoring and optimizing inventory levels to enhance operational efficiency and financial performance.