Adapthealth Corp (AHCO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,579,880 | 2,576,110 | 2,553,170 | 2,008,920 | 898,601 |
| Inventory | US$ in thousands | 139,842 | 113,642 | 127,754 | 123,095 | 58,783 |
| Inventory turnover | 18.45 | 22.67 | 19.99 | 16.32 | 15.29 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,579,880K ÷ $139,842K
= 18.45
Adapthealth Corp's inventory turnover has shown a consistent increase over the past five years. The ratio has steadily improved from 15.29 in December 31, 2020, to 18.45 in December 31, 2024. This indicates that the company is selling its inventory more efficiently, with a notable peak in turnover at 22.67 on December 31, 2023. The increasing trend suggests effective inventory management and sales strategies, potentially leading to lower carrying costs and higher profitability. However, the slight decrease in the ratio in 2024 compared to the previous year warrants further investigation to ensure continued efficiency in inventory turnover.
Peer comparison
Dec 31, 2024