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 '2022', PBH's inventory turnover was 3.87, reflecting efficiency in managing inventory stock. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at 2.20.
• In '2023', PBH's inventory turnover was 3.56, reflecting efficiency in managing inventory stock. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 2.06. Industry average declined by 0.14 from previous year.
• In '2024', PBH's inventory turnover was 3.33, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 2.28. Industry average increased by 0.22 compared to previous year.
• In '2025', PBH's inventory turnover was 3.51, reflecting efficiency in managing inventory stock. The increase since '2024' reflects strengthening financial performance. Industry average for Biotechnology: Pharmaceutical Preparations in '2025' stood at 3.51. Industry average increased by 1.24 compared to previous year.
Overall, PBH's inventory turnover has consistently declined during the past 4 years.

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

Good Range: Typically 4 to 12 depending on industry.