Name: Inventory Turnover

Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.

Interpretation:
• In '2021', BIO's inventory turnover was 2.24, reflecting efficiency in managing inventory stock. Industry average for Biotechnology: Laboratory Analytical Instruments in '2021' stood at 2.24.
• In '2022', BIO's inventory turnover was 1.91, reflecting efficiency in managing inventory stock. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Laboratory Analytical Instruments in '2022' stood at 2.29. Industry average increased by 0.05 compared to previous year.
• In '2023', BIO's inventory turnover was 1.66, reflecting efficiency in managing inventory stock. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Laboratory Analytical Instruments in '2023' stood at 2.26. Industry average declined by 0.03 from previous year.
• In '2024', BIO's inventory turnover was 1.54, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Laboratory Analytical Instruments in '2024' stood at 2.21. Industry average declined by 0.05 from previous year.
Overall, BIO's inventory turnover has been volatile but showed a downward trend over the past 4 years.

Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory

Good Range: Typically 4 to 12 depending on industry.