Adient PLC (ADNT)

Inventory turnover

		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	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	13,760,000	13,922,000	14,166,000	14,308,000	14,362,000	14,250,000	13,809,000	13,475,000	13,314,000	12,681,000	12,461,000	12,654,000	12,854,000	13,472,000	12,159,000	11,912,000	12,078,000	12,434,000	14,663,000	15,420,000
Inventory	US$ in thousands	758,000	775,000	791,000	833,000	841,000	877,000	919,000	972,000	953,000	953,000	998,000	942,000	976,000	850,000	756,000	711,000	685,000	737,000	775,000	772,000
Inventory turnover		18.15	17.96	17.91	17.18	17.08	16.25	15.03	13.86	13.97	13.31	12.49	13.43	13.17	15.85	16.08	16.75	17.63	16.87	18.92	19.97

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $13,760,000K ÷ $758,000K
= 18.15

Inventory turnover for Adient PLC has shown a consistent and mostly increasing trend over the past two years. The ratio has ranged from 12.49 to 19.97 with a recent ratio of 18.15 as of September 30, 2024. This suggests that Adient is efficiently managing its inventory by turning over its inventory approximately 18 times during the year.

The increasing trend in inventory turnover indicates that Adient has been effectively managing its inventory levels, possibly through better inventory control, demand forecasting, and supply chain management. A higher inventory turnover ratio generally indicates that the company is selling goods quickly and efficiently, which can lead to improved liquidity, reduced holding costs, and higher profitability.

Overall, a higher inventory turnover ratio is generally seen as positive, as long as it does not signify lost sales due to inventory shortages. Adient's increasing inventory turnover ratio could be a reflection of effective inventory management practices, potentially leading to improved financial performance and operational efficiency.