Abbott Laboratories (ABT)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	18,630,000	18,671,000	18,578,000	18,491,000	18,385,000	17,995,000	18,019,000	18,469,000	19,142,000	19,315,000	19,109,000	19,123,000	18,537,000	18,264,000	17,807,000	16,123,000	15,003,000	13,944,000	13,336,000	13,352,000
Inventory	US$ in thousands	6,194,000	6,813,000	6,814,000	6,827,000	6,570,000	6,650,000	6,871,000	6,173,000	6,173,000	5,734,000	5,899,000	5,691,000	5,157,000	5,261,000	5,439,000	5,387,000	5,012,000	5,152,000	5,202,000	4,568,000
Inventory turnover		3.01	2.74	2.73	2.71	2.80	2.71	2.62	2.99	3.10	3.37	3.24	3.36	3.59	3.47	3.27	2.99	2.99	2.71	2.56	2.92

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $18,630,000K ÷ $6,194,000K
= 3.01

The inventory turnover of Abbott Laboratories has experienced fluctuations over the reported periods, ranging from a low of 2.56 to a high of 3.59. The inventory turnover ratio indicates the efficiency with which the company manages its inventory levels. A higher turnover ratio generally suggests that the company is selling its inventory more quickly.

From March 31, 2020, to December 31, 2021, the inventory turnover showed a consistent increasing trend, indicating improved efficiency in managing inventory during this period. However, from March 31, 2022, onwards, the trend became more volatile, with fluctuations in the turnover ratio. It peaked at 3.59 on December 31, 2021, but then declined to 2.62 by June 30, 2023.

The most recent data as of December 31, 2024, shows an inventory turnover of 3.01, which is lower than the peak but higher than some of the previous periods. This suggests that while there have been fluctuations, the company still maintains a relatively efficient management of its inventory. Continued monitoring of inventory turnover will be essential to assess the company's ongoing effectiveness in managing inventory levels.