United Therapeutics Corporation (UTHR)

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 309,700 304,800 291,800 278,100 257,500 242,400 209,500 175,100 148,700 127,400 117,900 125,400 122,500 122,700 119,000 107,700 108,100 102,100 111,100 111,900
Inventory US$ in thousands 157,900 146,700 136,500 120,200 111,800 104,300 103,300 102,500 102,000 91,000 89,900 88,200 93,800 96,700 89,900 92,200 86,500 87,900 89,700 92,000
Inventory turnover 1.96 2.08 2.14 2.31 2.30 2.32 2.03 1.71 1.46 1.40 1.31 1.42 1.31 1.27 1.32 1.17 1.25 1.16 1.24 1.22

December 31, 2024 calculation

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

United Therapeutics Corporation's inventory turnover has shown a fluctuating trend over the analyzed period. The inventory turnover ratio measures the efficiency with which the company manages its inventory by indicating how many times the inventory is sold and replaced within a specific timeframe.

The data show that the inventory turnover ratio has generally increased from 1.22 on March 31, 2020, to 1.96 on December 31, 2024. A rising inventory turnover ratio generally implies that the company is selling its inventory more quickly and efficiently.

The ratio saw a significant increase from March 31, 2023, to September 30, 2024, indicating that United Therapeutics Corporation was managing its inventory more effectively during this period. However, there was a slight decrease in inventory turnover from September 30, 2024, to December 31, 2024.

Overall, the trend suggests that United Therapeutics Corporation has been improving its inventory management efficiency over the analyzed period. A high inventory turnover ratio is generally positive as it signifies strong sales and effective inventory control.