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Interested in the healthcare sector? We ran a screen on healthcare stocks to find those with encouraging sales trends.

We began by screening the healthcare sector for stocks with strong liquidity, with current ratios above 3. The current ratio is current assets/current liabilities, so ratios above 3 indicate the company has at least 3 times the liquid assets to cover their short-term liabilities.

We then screened for strong sales trends by comparing growth in revenue to growth in inventory over the last year. We screened for stocks with positive sales trends, with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.

To screen for strengthening liquidity, we also only focused on those companies with inventory decreasing as a percent of current assets.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think these companies have strong sales trends? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. Anika Therapeutics Inc. (ANIK): Develops, manufactures, and commercializes therapeutic products for tissue protection, healing, and repair. Market cap at $185.07M, most recent closing price at $13.45. Current ratio at 4.97. Revenue grew by 22.32% during the most recent quarter ($14.36M vs. $11.74M y/y). Inventory grew by 3.53% during the same time period ($9.08M vs. $8.77M y/y). Inventory, as a percentage of current assets, decreased from 15.94% to 14.2% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

2. Abaxis Inc. (ABAX): Develops, manufactures, markets, and sells portable blood analysis systems for use in the human or veterinary patient-care setting to provide clinicians with rapid blood constituent measurements in the medical and veterinarian markets. Market cap at $742.88M, most recent closing price at $34.25. Current ratio at 7.31. Revenue grew by 13.8% during the most recent quarter ($42.72M vs. $37.54M y/y). Inventory grew by -1.06% during the same time period ($19.6M vs. $19.81M y/y). Inventory, as a percentage of current assets, decreased from 15.97% to 15.38% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. Nxstage Medical, Inc. (NXTM): Engages in the development, manufacture, and marketing of products for the treatment of kidney failure, fluid overload, and related blood treatments and procedures in the United States. Market cap at $845.66M, most recent closing price at $15.05. Current ratio at 4.9. Revenue grew by 12.64% during the most recent quarter ($56.95M vs. $50.56M y/y). Inventory grew by -4.79% during the same time period ($34.95M vs. $36.71M y/y). Inventory, as a percentage of current assets, decreased from 23.87% to 22.25% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

4. Volcano Corporation (VOLC): Designs, develops, manufactures, and commercializes a suite of intravascular ultrasound and functional measurement products used in the diagnosis and treatment of vascular and structural heart disease. Market cap at $1.48B, most recent closing price at $27.82. Current ratio at 5.93. Revenue grew by 11.56% during the most recent quarter ($90.36M vs. $81M y/y). Inventory grew by -10.49% during the same time period ($39.26M vs. $43.86M y/y). Inventory, as a percentage of current assets, decreased from 13.79% to 12.17% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

5. ResMed Inc. (RMD): Engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. Market cap at $4.54B, most recent closing price at $31.79. Current ratio at 5.15. Revenue grew by 11.43% during the most recent quarter ($349.07M vs. $313.26M y/y). Inventory grew by -10.49% during the same time period ($183.49M vs. $205M y/y). Inventory, as a percentage of current assets, decreased from 17.05% to 13.84% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

6. Exactech Inc. (EXAC): Develops, manufactures, markets, distributes, and sells orthopedic implant devices and related surgical instrumentation, as well as offers biologic services to hospitals and physicians in the United States and internationally. Market cap at $218.36M, most recent closing price at $16.58. Current ratio at 4.28. Revenue grew by 9.86% during the most recent quarter ($58.63M vs. $53.37M y/y). Inventory grew by -0.39% during the same time period ($63.53M vs. $63.78M y/y). Inventory, as a percentage of current assets, decreased from 52.65% to 49.75% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

7. Teleflex Incorporated (TFX): Develops, manufactures, and supplies single-use medical devices used by hospitals and healthcare providers worldwide. Market cap at $2.41B, most recent closing price at $59.0. Current ratio at 4.8. Revenue grew by 9.54% during the most recent quarter ($387.76M vs. $354M y/y). Inventory grew by -6.54% during the same time period ($298.97M vs. $319.9M y/y). Inventory, as a percentage of current assets, decreased from 34.55% to 22.6% during the most recent quarter (comparing 3 months ending 2012-04-01 to 3 months ending 2011-03-27).

8. RTI Biologics, Inc. (RTIX): And its subsidiaries produce orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues, and improve surgical outcomes. Market cap at $203.22M, most recent closing price at $3.64. Current ratio at 4.9. Revenue grew by 7.6% during the most recent quarter ($43.74M vs. $40.65M y/y). Inventory grew by -11.56% during the same time period ($75.66M vs. $85.55M y/y). Inventory, as a percentage of current assets, decreased from 54.5% to 47.58% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

9. Trinity Biotech plc (TRIB): Develops, manufactures, distributes, and sells diagnostic test kits and instrumentation worldwide. Market cap at $245.1M, most recent closing price at $11.30. Current ratio at 9.15. Revenue grew by 7.4% during the most recent quarter ($20.03M vs. $18.65M y/y). Inventory grew by 3.54% during the same time period ($19.3M vs. $18.64M y/y). Inventory, as a percentage of current assets, decreased from 18.16% to 17.43% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

10. Young Innovations Inc. (YDNT): Engages in the development, manufacture, and marketing of supplies and equipment used by dentists, dental hygienists, dental assistants, and consumers primarily in the United States, as well as in Canada, Europe, South America, Central America, and the Pacific Rim. Market cap at $265.67M, most recent closing price at $33.80. Current ratio at 3.89. Revenue grew by 2.81% during the most recent quarter ($26.75M vs. $26.02M y/y). Inventory grew by -3.26% during the same time period ($16.93M vs. $17.5M y/y). Inventory, as a percentage of current assets, decreased from 48.17% to 43.34% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

11. St. Jude Medical Inc. (STJ): Develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. Market cap at $11.17B, most recent closing price at $35.59. Current ratio at 3.31. Revenue grew by 1.42% during the most recent quarter ($1,395M vs. $1,375.51M y/y). Inventory grew by -10.17% during the same time period ($626M vs. $696.86M y/y). Inventory, as a percentage of current assets, decreased from 22.24% to 17.79% during the most recent quarter (comparing 13 weeks ending 2012-03-31 to 13 weeks ending 2011-04-02).

12. Natus Medical Inc. (BABY): Develops, manufactures, and markets neurodiagnostic and newborn care products worldwide. Market cap at $297.45M, most recent closing price at $10.10. Current ratio at 3.24. Revenue grew by 0.68% during the most recent quarter ($59.51M vs. $59.11M y/y). Inventory grew by -25.86% during the same time period ($29.39M vs. $39.64M y/y). Inventory, as a percentage of current assets, decreased from 29.09% to 21.97% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 12 Highly Liquid Healthcare Stocks With Strong Sales Trends