Zimmer Biomet Holdings Inc (ZBH)

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	6,117,400	6,018,000	5,960,000	5,914,800	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
Inventory	US$ in thousands	2,235,300	2,368,700	2,369,900	2,388,200	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
Inventory turnover		2.74	2.54	2.51	2.48	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,117,400K ÷ $2,235,300K
= 2.74

The inventory turnover ratio of Zimmer Biomet Holdings Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced during a specific period.

The trend in Zimmer Biomet's inventory turnover ratio indicates that the company is managing its inventory turnover relatively consistently, with some fluctuations. The tendency has been to maintain the ratio within the range of approximately 2.5 to 3.2 times over the evaluated period.

There was a notable increase in inventory turnover from December 31, 2021, to March 31, 2022, where it rose from 3.16 to 3.12, suggesting improved efficiency in managing inventory during that period. However, the ratio started to decline gradually from June 30, 2022, to December 31, 2024, indicating a potential slowdown in inventory turnover efficiency within the company.

Overall, Zimmer Biomet Holdings Inc's inventory turnover ratio shows that the company is effectively managing its inventory levels and aligning them with sales demands. It is essential for the company to monitor this ratio to ensure optimal inventory management and operational efficiency in the future.