Teleflex Incorporated (TFX)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	2,184,620	2,118,645	2,098,219	2,070,420	2,293,284	2,281,527	2,277,067	2,296,186	2,296,236	2,303,586	2,251,960	2,199,250	2,141,855	2,081,771	2,118,583	2,137,177	2,203,787	2,171,617	2,169,016	2,201,920
Inventory	US$ in thousands	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	476,557	472,594	461,320	445,566
Inventory turnover		3.49	3.39	3.32	3.37	3.96	4.30	4.46	4.67	4.81	4.76	4.59	4.29	4.17	3.96	4.12	4.37	4.62	4.60	4.70	4.94

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,184,620K ÷ $626,216K
= 3.49

Teleflex Incorporated's inventory turnover has been relatively stable over the past eight quarters, ranging from 2.06 to 2.58. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times during a period the company sells and replaces its inventory.

A decreasing inventory turnover ratio could suggest inefficiencies in managing inventory levels or slower sales. In contrast, an increasing ratio may indicate more effective inventory management or strong sales performance.

In Teleflex's case, the inventory turnover has slightly decreased from 2.18 in Q4 2022 to 2.12 in Q4 2023, showing a slight decline in the company's efficiency in managing its inventory. It is essential for Teleflex to further analyze the reasons behind this trend and take necessary actions to optimize inventory levels and improve overall performance.