Adapthealth Corp (AHCO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,720,610 | 2,553,170 | 2,008,920 | 898,601 | 440,705 |
| Inventory | US$ in thousands | 113,642 | 127,754 | 123,095 | 58,783 | 13,239 |
| Inventory turnover | 23.94 | 19.99 | 16.32 | 15.29 | 33.29 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,720,610K ÷ $113,642K
= 23.94
The inventory turnover of AdaptHealth Corp has shown a generally increasing trend over the past five years. In 2019, the inventory turnover was highest at 33.26, indicating that the company sold and replaced its inventory more than 33 times during that year. However, there was a notable decline in inventory turnover in 2020 to 15.29, before a steady increase in subsequent years.
The inventory turnover ratio reached 23.94 in 2023, reflecting an improvement from the previous year's figure of 19.99. This indicates that the company is managing its inventory more efficiently by selling and replacing stock more frequently. The rising inventory turnover ratio suggests that AdaptHealth Corp is optimizing its inventory management practices to better meet customer demand and reduce carrying costs.
Peer comparison
Dec 31, 2023