Teleflex Incorporated (TFX)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,344,640	1,327,560	1,259,950	1,259,960	1,212,280
Inventory	US$ in thousands	600,133	626,216	578,507	477,643	513,196
Inventory turnover		2.24	2.12	2.18	2.64	2.36

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,344,640K ÷ $600,133K
= 2.24

Teleflex Incorporated's inventory turnover has fluctuated over the past five years, with values ranging from 2.12 to 2.64. The inventory turnover ratio indicates the number of times a company sells and replaces its inventory during a specific period, reflecting the efficiency of inventory management.

In 2021, the inventory turnover improved to 2.64, indicating that Teleflex was selling and replenishing its inventory more frequently, possibly driven by effective inventory control measures or increased sales volume. However, this improvement was not sustained, as the ratio declined in the subsequent years, reaching its lowest point of 2.12 in 2023.

A lower inventory turnover ratio can suggest excess inventory levels or difficulties in selling products, potentially leading to increased storage costs or obsolete inventory issues. It is worth noting that a slight increase was seen in 2024, with the ratio climbing to 2.24, but still below the 2021 peak.

Overall, Teleflex's inventory turnover has displayed variability, signifying potential challenges in optimizing inventory levels and sales efficiency. Further analysis of the company's inventory management practices and operational strategies may be required to address fluctuations and enhance overall performance.