Varex Imaging Corp (VREX)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 569,700 | 576,800 | 617,500 | 601,100 | 581,000 | 575,900 | 562,000 | 557,700 | 558,800 | 546,600 | 508,900 | 343,700 | 349,600 | 369,700 | 381,700 | 555,500 | 542,500 | 523,900 | 652,000 | 600,900 |
| Inventory | US$ in thousands | 289,700 | 277,500 | 297,700 | 310,700 | 320,300 | 303,200 | 300,300 | 269,200 | 247,600 | 224,800 | 243,200 | 248,200 | 269,800 | 271,900 | 283,200 | 282,200 | 269,100 | 248,200 | 263,400 | 261,200 |
| Inventory turnover | 1.97 | 2.08 | 2.07 | 1.93 | 1.81 | 1.90 | 1.87 | 2.07 | 2.26 | 2.43 | 2.09 | 1.38 | 1.30 | 1.36 | 1.35 | 1.97 | 2.02 | 2.11 | 2.48 | 2.30 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $569,700K ÷ $289,700K
= 1.97
Based on the inventory turnover figures provided for Varex Imaging Corp, we can observe fluctuations in the company's efficiency in managing its inventory over the past few years. The inventory turnover ratio measures how effectively a company is able to sell its inventory during a specific period.
Looking at the data, we can see that the inventory turnover ratio ranged from a low of 1.30 in September 2020 to a high of 2.48 in March 2019. This indicates that the company had varying levels of success in selling its inventory during these periods. A higher turnover ratio typically suggests that the company is efficiently selling its products and restocking its inventory at a faster rate.
Overall, the trend appears to show some volatility in inventory turnover, with fluctuations occurring from quarter to quarter. It is essential for the company to analyze the reasons behind these fluctuations and work towards maintaining a consistent and optimal level of inventory turnover to ensure efficient management of its inventory levels.
Peer comparison
Dec 31, 2023
Dec 31, 2023