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.