Analysis of Inventory
Inventory Disclosure
Edwards Lifesciences Corp., balance sheet: inventory
US$ in thousands
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Total inventory levels exhibited a general growth trajectory from 2017 through 2020, followed by a contraction in 2021. The total inventory value increased from 554.9 million USD in 2017 to a peak of 802.3 million USD in 2020, representing a cumulative increase of approximately 44.6% over the four-year period, before decreasing to 726.7 million USD at the end of 2021.
- Raw Materials
- Raw materials demonstrated a consistent upward trend between 2017 and 2020, rising from 101.4 million USD to 136.7 million USD. A marginal reduction was observed in 2021, with the value settling at 132.8 million USD.
- Work in Process
- Inventory in the work in process stage experienced fluctuations, including a temporary decline in 2019 to 121.7 million USD. However, this category reached its highest level of the period in 2021, totaling 164.3 million USD.
- Finished Products
- Finished products represented the largest component of the total inventory throughout the analyzed timeframe. This segment saw a significant escalation, peaking at 525.6 million USD in 2020, which was followed by a sharp reduction to 429.6 million USD in 2021.
The substantial increase in total inventory observed in 2020 was primarily driven by the surge in finished products, suggesting a period of aggressive stockpiling or a temporary deceleration in sales relative to production. The subsequent correction in 2021, paired with the peak in work in process inventory, indicates a shift toward active production and a normalization of finished goods levels.
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