Sarepta Therapeutics Inc (SRPT)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	513,751	454,710	287,854	318,537	285,661
Inventory	US$ in thousands	322,859	203,968	186,212	231,961	171,379
Inventory turnover		1.59	2.23	1.55	1.37	1.67

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $513,751K ÷ $322,859K
= 1.59

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times in a year the company sells and replaces its inventory. In the case of Sarepta Therapeutics Inc, the inventory turnover has fluctuated over the past five years, ranging from 1.37 to 2.23.

A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally a positive sign as it suggests efficient inventory management and less risk of obsolete inventory. Conversely, a lower turnover ratio could imply overstocking or slower sales.

Based on the data provided:
- In 2023, Sarepta Therapeutics Inc's inventory turnover was 1.59, representing a slight decrease from the previous year.
- The highest inventory turnover of 2.23 was observed in 2022, showing that the company efficiently managed its inventory that year.
- The lowest turnover ratio in recent years was in 2020, indicating a potential inventory management issue or slower sales during that period.
- Overall, the company's inventory turnover ratios have varied, reflecting fluctuations in sales and inventory management practices over the past five years.

It is important for Sarepta Therapeutics Inc to further analyze the factors contributing to these fluctuations to ensure optimal inventory management efficiency and profitability in the future.