United Therapeutics Corporation (UTHR)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	736,700	274,500	397,300	108,100	117,600
Inventory	US$ in thousands	111,800	102,000	93,800	86,500	93,400
Inventory turnover		6.59	2.69	4.24	1.25	1.26

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $736,700K ÷ $111,800K
= 6.59

United Therapeutics Corp's inventory turnover has shown an increasing trend over the past five years, indicating an improvement in the efficiency of managing its inventory. The company's inventory turnover ratio increased from 1.26 in 2019 to 2.30 in 2023. This indicates that, on average, inventory was turned over 1.26 times in 2019 compared to 2.30 times in 2023.

A higher inventory turnover ratio suggests that the company is selling its inventory more quickly, which can be a positive sign of operational efficiency and effective inventory management. It could also indicate that the company is managing its production and sales processes more effectively, minimizing excess inventory levels that could tie up capital.

Overall, the improving trend in United Therapeutics Corp's inventory turnover ratio suggests that the company has been successfully optimizing its inventory management processes in recent years. However, further analysis would be needed to understand the specific factors driving this improvement and to assess the sustainability of this trend.