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Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Zai Lab's Average Total Inventories for the quarter that ended in Mar. 2026 was $80.4 Mil. Zai Lab's Revenue for the
three
months ended in Mar. 2026 was $99.6 Mil.
Zai Lab's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.81.
Zai Lab's Inventory-to-Revenue for the quarter that ended in Mar. 2026
increased
from Dec. 2025 (0.56) to Dec. 2025 (0.81)
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Zai Lab's Days Inventory for the
three
months ended in Mar. 2026 was 191.27.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Zai Lab's Inventory Turnover for the quarter that ended in Mar. 2026 was 0.48.
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
More Related Terms:
1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Zai Lab's Days Inventory for the
three
months ended in Mar. 2026 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zai Lab Inventory-to-Revenue Related Terms
Zai Lab Inventory-to-Revenue Historical Data
* Premium members only.
The historical data trend for Zai Lab's Inventory-to-Revenue can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ZLAB vs COAG, SLS, IOVA: Inventory-to-Revenue Comparison
For the Biotechnology subindustry, Zai Lab's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zai Lab Inventory-to-Revenue vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Zai Lab's Inventory-to-Revenue falls into.
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Zai Lab's Inventory-to-Revenue for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zai Lab (ZLAB) has a Inventory-to-Revenue of 0.81 as of Mar. 2026. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Zai Lab and its competitors.
Is Zai Lab's Inventory-to-Revenue too high?
Zai Lab's current Inventory-to-Revenue is 0.81. Overall, Zai Lab has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zai Lab's Inventory-to-Revenue compare to COAG and SLS?
Zai Lab's Inventory-to-Revenue of 0.81 can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory-to-Revenue for a Biotechnology company?
A good Inventory-to-Revenue depends on the Biotechnology industry context. However, Inventory-to-Revenue should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory-to-Revenue mean?
A high Inventory-to-Revenue can signal that a stock is expensive relative to its fundamentals. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Zai Lab and its competitors. Zai Lab's current Inventory-to-Revenue is 0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zai Lab stock overvalued right now?
Based on GuruFocus' analysis, Zai Lab (ZLAB) is currently considered Possible Value Trap. The stock's GF Value™ is $30.10, compared to a current price of $18.28 — trading 39.3% below its estimated fair value. The current Inventory-to-Revenue is 0.81. Zai Lab's overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory-to-Revenue calculated?
Inventory-to-Revenue is calculated from a company's financial statements. For Zai Lab (ZLAB), the current Inventory-to-Revenue is 0.81 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zai Lab (ZLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued.
The current stock price of $18.28 is trading 39.3% below its estimated GF Value™ of $30.10.
GuruFocus considers Zai Lab to be Possible Value Trap.
Key valuation signals for ZLAB:
Inventory-to-Revenue: 0.81
GF Value™: $30.10 vs. price of $18.28 (39.3% below fair value)
No single metric tells the full story. See the ZLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. Zai Lab has a diverse pipeline of potentially first-in-class product candidates developed through in-house R&D and global partnerships. The company has successfully commercialized several products in China, including Zejula, Optune, Qinlock, and Nuzyra, with plans for further expansion The pipeline of proprietary drug candidates of the company includes ZL-1222, ZL-1311, ZL-6201 and many others.
68GF Score
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