Regeneron Pharmaceuticals Inc (REGN)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	3,224,100	3,108,900	3,035,000	2,928,200	2,840,300	1,931,200	1,870,100	1,713,600	1,562,500	2,368,000	2,272,300	2,331,400	2,287,000	1,801,000	1,644,200	1,437,900	1,399,600	1,706,700	1,803,300	1,876,000
Inventory	US$ in thousands	3,087,300	3,018,000	2,873,600	2,714,900	2,580,500	2,562,000	2,507,700	2,424,700	2,401,900	2,412,200	2,218,500	1,991,500	1,951,300	2,053,800	1,983,900	2,164,700	1,916,600	1,801,600	1,640,900	1,480,900
Inventory turnover		1.04	1.03	1.06	1.08	1.10	0.75	0.75	0.71	0.65	0.98	1.02	1.17	1.17	0.88	0.83	0.66	0.73	0.95	1.10	1.27

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,224,100K ÷ $3,087,300K
= 1.04

The inventory turnover ratio of Regeneron Pharmaceuticals Inc has been fluctuating over the periods provided in the data. The inventory turnover ratio measures how efficiently the company is managing its inventory. A higher ratio indicates that inventory is being sold more quickly, which is generally favorable.

From March 31, 2020, to September 30, 2022, the inventory turnover ratio of Regeneron Pharmaceuticals Inc gradually decreased from 1.27 to 0.98, indicating a longer time taken to sell inventory. This may suggest potential issues with sales or inventory management during this period.

However, from December 31, 2022, to December 31, 2024, there was some improvement in the inventory turnover ratio, increasing from 0.65 to 1.04. This indicates that the company's inventory turnover has started to improve, showing more efficient management of inventory during these periods.

Overall, the company should aim to maintain a balance in its inventory turnover ratio, ensuring that inventory is neither overstocked nor underutilized. Evaluating the reasons behind the fluctuations and taking appropriate steps to optimize inventory levels and sales efficiency can lead to improved profitability and operational performance for Regeneron Pharmaceuticals Inc.