Veracyte Inc (VCYT)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 156,218 112,903 101,582 74,400 41,455
Inventory US$ in thousands 21,750 16,128 14,294 11,225 4,657
Inventory turnover 7.18 7.00 7.11 6.63 8.90

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $156,218K ÷ $21,750K
= 7.18

The inventory turnover ratios for Veracyte Inc. from December 31, 2020, through December 31, 2024, demonstrate a generally stable level of inventory management efficiency over this period. In 2020, the ratio stood at 8.90, indicating that the company sold and replenished its inventory approximately 8.9 times during that year. The ratio declined significantly in 2021 to 6.63, reflecting a decrease in inventory turnover efficiency during that period. This decline may suggest slower inventory sales relative to inventory levels or increased inventory holdings.

Subsequently, the ratio improved modestly in 2022 to 7.11, signaling a partial recovery in inventory turnover performance. The 2023 figure slightly declined to 7.00, maintaining a level close to the previous year. By 2024, the ratio increased marginally again to 7.18, indicating a stabilization in inventory management with a turnover rate near the 2022 and 2023 levels.

Overall, the fluctuating but relatively steady inventory turnover ratio over these years suggests that Veracyte Inc. has maintained a consistent approach to inventory management, with minor variations in sales efficiency. The initial decline in 2021 may have been influenced by operational or market dynamics, while the subsequent recovery and stability reflect a balanced inventory approach consistent with industry standards.