STAAR Surgical Company (STAA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 74,319 | 69,764 | 61,008 | 51,835 | 45,098 |
| Inventory | US$ in thousands | 43,305 | 35,130 | 24,161 | 17,274 | 18,111 |
| Inventory turnover | 1.72 | 1.99 | 2.53 | 3.00 | 2.49 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $74,319K ÷ $43,305K
= 1.72
STAAR Surgical Company's inventory turnover has shown some fluctuations over the years.
In 2020, the inventory turnover ratio was 2.49, indicating that the company's inventory was turned over approximately 2.49 times during the year. This suggests that STAAR Surgical managed its inventory fairly efficiently that year.
By 2021, the inventory turnover improved to 3.00, showing that the company was able to sell and replace its inventory more frequently compared to the previous year. This increase may suggest better inventory management practices or increasing sales volume.
However, in 2022, the inventory turnover ratio dropped to 2.53, indicating a slight decrease in the efficiency of inventory turnover compared to the previous year. This could be a signal that the company might have excess or slow-moving inventory during that period.
By the end of 2023, the inventory turnover decreased further to 1.99, indicating that the company's inventory turnover slowed down significantly. This may raise concerns about the company's inventory management practices or declining sales volume during that year.
In 2024, the inventory turnover ratio declined even more to 1.72, suggesting that the company's inventory turnover efficiency decreased further. A low inventory turnover ratio may indicate that the company is struggling to sell its inventory or facing challenges in managing its stock effectively.
Overall, the trend in STAAR Surgical Company's inventory turnover has been somewhat inconsistent, showing a mix of improvements and declines over the years. It would be important for the company to closely monitor its inventory levels, sales performance, and implement effective inventory management strategies to improve its inventory turnover ratios and operational efficiency in the future.
Peer comparison
Dec 31, 2024