Repligen Corporation (RGEN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	640,120	612,644	501,593	303,322	235,580
Inventory	US$ in thousands	202,321	238,277	184,494	95,025	54,832
Inventory turnover		3.16	2.57	2.72	3.19	4.30

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $640,120K ÷ $202,321K
= 3.16

Repligen Corp.'s inventory turnover has fluctuated over the past five years, ranging from a high of 2.17 in 2019 to a low of 1.45 in 2022. The inventory turnover ratio indicates the efficiency of the company in managing its inventory levels. A higher turnover ratio generally indicates that the company is selling its inventory quickly, which is favorable as it reduces holding costs and the risk of obsolescence.

The decreasing trend in inventory turnover from 2019 to 2022 may suggest potential issues in inventory management or a slowdown in sales. However, the increase in inventory turnover in 2023 to 1.75 shows improvement in managing inventory levels compared to the previous year.

Overall, while the inventory turnover ratios show fluctuations, it is essential for Repligen Corp. to closely monitor and manage its inventory levels to ensure optimal efficiency in its operations.