Adient PLC (ADNT)

Inventory turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	15,725,000	15,986,000	16,227,000
Inventory	US$ in thousands	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	793,000	783,000	828,000
Inventory turnover		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	19.83	20.42	19.60

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,308,000K ÷ $833,000K
= 17.18

The inventory turnover ratio for Adient plc has seen a consistent upward trend over the past eight quarters, indicating an improvement in the efficiency of managing its inventory. The ratio has increased from 12.49 in Q2 2022 to 17.18 in Q1 2024. This suggests that Adient is selling its inventory at a faster rate while maintaining relatively stable inventory levels.

A high inventory turnover ratio signifies that the company is efficiently managing its inventory levels, which can lead to reduced carrying costs and lower chances of obsolescence or spoilage. Adient's increasing inventory turnover ratio indicates effective inventory management practices, potentially resulting in improved cash flow and profitability.

Overall, the trend of increasing inventory turnover is a positive indicator of Adient's operational efficiency in managing its inventory effectively, which could contribute to the company's financial performance and long-term sustainability.