Adapthealth Corp (AHCO)
Inventory turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,574,310 | 2,236,145 | 2,756,987 | 2,742,329 | 2,717,217 | 3,241,752 | 2,682,237 | 2,613,486 | 2,553,169 | 2,412,922 | 2,296,367 | 2,179,209 | 1,989,834 | 1,826,077 | 1,514,323 | 1,181,366 | 898,601 | 1,102,641 | 834,110 | 621,300 |
| Inventory | US$ in thousands | 139,842 | 133,490 | 123,896 | 108,585 | 113,642 | 116,332 | 114,882 | 136,018 | 127,754 | 125,362 | 102,675 | 99,636 | 123,095 | 99,881 | 81,507 | 75,487 | 58,783 | 46,477 | 24,444 | 17,968 |
| Inventory turnover | 18.41 | 16.75 | 22.25 | 25.26 | 23.91 | 27.87 | 23.35 | 19.21 | 19.99 | 19.25 | 22.37 | 21.87 | 16.17 | 18.28 | 18.58 | 15.65 | 15.29 | 23.72 | 34.12 | 34.58 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,574,310K ÷ $139,842K
= 18.41
Adapthealth Corp's inventory turnover has fluctuated over the reporting periods provided. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a certain period. A higher turnover ratio is generally more favorable as it suggests efficient management of inventory levels.
From March 31, 2020, to December 31, 2022, the inventory turnover ratio showed a downward trend, decreasing from 34.58 to 19.99. This decline may indicate slower sales relative to the average inventory held by the company during this period.
However, from March 31, 2023, onwards, there was an improvement in the inventory turnover ratio, reaching a peak of 27.87 on September 30, 2023. This increase suggests that the company may have better managed its inventory during this period, potentially leading to a more efficient utilization of resources.
The fluctuations in the inventory turnover ratio may be attributed to various factors such as changes in demand for Adapthealth Corp's products, inventory management practices, or supply chain disruptions. It is essential for the company to closely monitor and optimize its inventory turnover to ensure efficient operations and maximize profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024