STAAR Surgical Company (STAA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 69,764 | 61,008 | 51,835 | 45,098 | 38,231 |
| Inventory | US$ in thousands | 70,260 | 48,322 | 34,548 | 36,222 | 34,284 |
| Inventory turnover | 0.99 | 1.26 | 1.50 | 1.25 | 1.12 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $69,764K ÷ $70,260K
= 0.99
STAAR Surgical Company's inventory turnover has exhibited fluctuating trends over the past five years. In 2023, the inventory turnover ratio declined to 0.99 from 1.26 in 2022, indicating that the company was selling its inventory less frequently during the year. This could suggest potential inefficiencies in managing inventory levels or slower sales turnover.
Comparing the current ratio to previous years, it is lower than the ratios observed in 2021 and 2020, but higher than the ratio in 2019. The decrease in inventory turnover from 2022 to 2023 may raise concerns about the company's ability to efficiently manage its inventory levels and convert them into sales.
It is important for STAAR Surgical Company to closely monitor its inventory management practices to ensure optimal inventory turnover levels and minimize the risk of obsolete inventory or storage costs. Further analysis into the underlying factors contributing to the decrease in inventory turnover would be beneficial in addressing any potential operational inefficiencies.
Peer comparison
Dec 31, 2023