Zimmer Biomet Holdings Inc (ZBH)

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	5,874,300	6,146,400	6,082,500	6,035,200	6,000,400	6,163,300	6,426,300	6,654,000	6,780,700	6,678,400	6,649,900	6,350,200	6,983,800	6,461,500	6,464,800	6,833,200	6,250,800	5,620,100	5,575,800	5,461,700
Inventory	US$ in thousands	2,385,200	2,323,300	2,275,800	2,241,300	2,147,200	2,128,600	2,122,700	2,132,100	2,148,000	2,517,400	2,533,000	2,511,700	2,450,700	2,492,200	2,496,500	2,463,200	2,385,000	2,362,300	2,344,500	2,310,200
Inventory turnover		2.46	2.65	2.67	2.69	2.79	2.90	3.03	3.12	3.16	2.65	2.63	2.53	2.85	2.59	2.59	2.77	2.62	2.38	2.38	2.36

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,874,300K ÷ $2,385,200K
= 2.46

Zimmer Biomet Holdings Inc's inventory turnover has been fluctuating over the past eight quarters. The ratio has been generally declining since Q1 2022, when it stood at 1.09, to Q4 2023, where it was at 0.87. This indicates that the company is taking longer to sell its inventory relative to previous periods. A lower inventory turnover ratio could suggest overstocking, slowing sales, or inefficient inventory management. It would be essential for the company to further investigate the reasons behind the declining trend to optimize inventory levels and improve operational efficiency.