Teleflex Incorporated (TFX)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cost of revenue (ttm) US$ in thousands 1,343,245 1,330,243 1,326,118 1,329,721 1,327,558 1,320,996 1,305,365 1,285,867 1,261,797 1,268,049 1,266,066 1,266,045 1,259,961 1,245,404 1,231,917 1,204,662 1,212,282 1,167,343 1,141,005 1,131,926
Inventory US$ in thousands 600,133 639,938 636,908 627,866 626,216 625,075 631,555 614,106 578,507 530,088 510,531 491,422 477,643 484,345 490,318 512,284 513,196 526,125 514,755 488,856
Inventory turnover 2.24 2.08 2.08 2.12 2.12 2.11 2.07 2.09 2.18 2.39 2.48 2.58 2.64 2.57 2.51 2.35 2.36 2.22 2.22 2.32

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,343,245K ÷ $600,133K
= 2.24

Teleflex Incorporated's inventory turnover has shown some fluctuations over the periods analyzed. The inventory turnover ratio measures how effectively a company is managing its inventory levels by indicating how many times a company sells and replaces its inventory during a specific period.

From March 2020 to June 2022, the inventory turnover ratio generally increased from 2.32 to 2.51, indicating an improvement in inventory management efficiency. The peak was reached in December 2021, with a ratio of 2.64. This upward trend suggests that Teleflex was selling and replenishing its inventory more frequently during these periods.

However, from December 2021 to December 2024, the inventory turnover ratio started to decline gradually, falling to 2.24 by the end of December 2024. This decrease could suggest a slowdown in the company's inventory management efficiency, where the inventory is being held for a longer period before being sold or replaced.

Overall, the trend in Teleflex's inventory turnover ratio indicates potential fluctuations in inventory management effectiveness over the periods analyzed. Further analysis of the factors influencing these changes, such as demand patterns, supply chain issues, and production efficiencies, may help in understanding the company's inventory management strategy and its impact on overall performance.