TG Therapeutics Inc (TGTX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 192,784 | 136,837 | 70,219 | 128,302 | 107,850 |
| Inventory | US$ in thousands | 110,458 | 39,823 | 0 | -23,604 | — |
| Inventory turnover | 1.75 | 3.44 | — | — | — |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $192,784K ÷ $110,458K
= 1.75
Inventory turnover is a financial ratio that measures how many times a company's inventory is sold and replaced over a certain period. It is calculated by dividing the cost of goods sold by the average inventory balance. In the case of TG Therapeutics Inc, the inventory turnover for the years ending on December 31, 2023 and December 31, 2024, are 3.44 and 1.75, respectively.
The inventory turnover of 3.44 in 2023 indicates that TG Therapeutics Inc has efficiently managed its inventory by selling and replenishing it approximately 3.44 times during that year. This suggests a healthy balance between carrying too much or too little inventory, allowing the company to avoid excess inventory holding costs or potential stockouts.
On the other hand, the inventory turnover decreasing to 1.75 in 2024 may indicate that the company took longer to sell and replace its inventory during that year. A lower inventory turnover can sometimes suggest overstocking, difficulty in selling products, or obsolescence issues, which may impact the company's profitability and cash flow.
In conclusion, while a higher inventory turnover is generally preferable, the slight decrease in TG Therapeutics Inc's inventory turnover from 2023 to 2024 should be further investigated to understand the underlying reasons and implications for the company's operations and financial performance.
Peer comparison
Dec 31, 2024