Select Medical Holdings (SEM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,110,950 | 5,959,020 | 5,634,770 | 5,054,070 | 4,982,040 |
| Inventory | US$ in thousands | 22,726 | -74,857 | — | 5,686 | 0 |
| Inventory turnover | 268.90 | — | — | 888.86 | — |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,110,950K ÷ $22,726K
= 268.90
To calculate the inventory turnover for Select Medical Holdings Corporation, we need both the cost of goods sold (COGS) and the average inventory for each year. Since these figures are not provided in the table, we are unable to determine the inventory turnover ratio for the company. Inventory turnover is a crucial metric that measures how efficiently a company manages its inventory levels and how quickly it can sell its products. A higher inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently. Conversely, a lower ratio may suggest excess inventory levels or slow-moving inventory, which can tie up capital and lead to potential obsolescence or markdowns. Therefore, it is essential for companies to closely monitor their inventory turnover to optimize their working capital and maintain healthy operations.
Peer comparison
Dec 31, 2023