Adapthealth Corp (AHCO)

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	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	440,704	296,065	295,261	293,625
Inventory	US$ in thousands	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	13,239	14,234	13,527	13,527
Inventory turnover		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	33.29	20.80	21.83	21.71

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,717,217K ÷ $113,642K
= 23.91

AdaptHealth Corp's inventory turnover has remained relatively stable over the past eight quarters, ranging from 19.20 to 23.94. The company efficiently manages its inventory, as reflected in the high turnover ratios. This indicates that the company is able to sell and replace its inventory multiple times within a year.

The highest inventory turnover was observed in Q4 2023 at 23.94, indicating that the company sold through its inventory at a faster rate during this period. Conversely, the lowest inventory turnover was in Q1 2023 at 19.20, suggesting a slightly slower rate of inventory turnover during that quarter.

Overall, the consistent high inventory turnover ratios suggest that AdaptHealth Corp is effectively managing its inventory levels to meet customer demand and minimize holding costs, which is a positive sign for operational efficiency and financial health.