Zimmer Biomet Holdings Inc (ZBH)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	6,117,300	5,874,400	6,000,400	6,780,700	6,983,800
Inventory	US$ in thousands	2,235,300	2,385,200	2,147,200	2,148,000	2,450,700
Inventory turnover		2.74	2.46	2.79	3.16	2.85

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $6,117,300K ÷ $2,235,300K
= 2.74

Based on the inventory turnover data provided for Zimmer Biomet Holdings Inc, we observe fluctuations in the company's efficiency in managing its inventory over the period from December 31, 2020, to December 31, 2024.

The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a certain period. A higher turnover ratio typically suggests that the company is effectively managing its inventory levels and efficiently selling its products.

In December 2020, Zimmer Biomet had an inventory turnover of 2.85, which increased to 3.16 by December 2021, indicating improved efficiency in inventory management. However, the ratio declined to 2.79 by December 2022, suggesting a decrease in the rate at which inventory was being turned over.

By December 2023, the inventory turnover ratio further decreased to 2.46, signaling potential challenges in inventory management efficiency. However, there was a slight improvement noted by December 2024, with the ratio standing at 2.74.

Overall, the trend in inventory turnover for Zimmer Biomet Holdings Inc during the period shows some variability, with periods of improvement followed by declines. It is essential for the company to assess and address factors impacting inventory turnover to ensure optimal inventory management and operational efficiency.