United Therapeutics Corporation (UTHR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	309,700	257,500	146,700	122,500	108,100
Inventory	US$ in thousands	157,900	111,800	102,000	93,800	86,500
Inventory turnover		1.96	2.30	1.44	1.31	1.25

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $309,700K ÷ $157,900K
= 1.96

Inventory turnover is a crucial financial ratio that indicates how efficiently a company manages its inventory. United Therapeutics Corporation's inventory turnover has shown a varying trend over the years based on the provided data.

In 2020, the inventory turnover ratio was 1.25, which means that the company sold its entire inventory 1.25 times during that year. This suggests a relatively slow sales pace compared to the amount of inventory held.

The ratio increased in 2021 to 1.31, indicating a slight improvement in inventory management efficiency. However, the ratio continued to fluctuate in the following years. By the end of 2023, the inventory turnover ratio significantly improved to 2.30, reflecting a much faster turnover of inventory assets.

In the most recent year, 2024, the inventory turnover ratio dropped slightly to 1.96, indicating a decrease in the efficiency of inventory management compared to the previous year.

Overall, United Therapeutics Corporation's inventory turnover ratio has shown both improvements and fluctuations over the years analyzed. The company seems to have made progress in managing its inventory more effectively, as reflected by the increase in the ratio in recent years. However, the slight decrease in 2024 may require further monitoring to ensure optimal inventory management practices are maintained.