Amphastar P (AMPH)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	293,274	250,127	238,029	206,506	190,434
Inventory	US$ in thousands	105,833	103,584	92,807	96,831	110,501
Inventory turnover		2.77	2.41	2.56	2.13	1.72

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $293,274K ÷ $105,833K
= 2.77

The inventory turnover ratio for Amphastar Pharmaceuticals Inc has shown an improving trend over the last five years. The ratio has increased steadily from 1.72 in 2019 to 2.77 in 2023. This indicates that the company is managing its inventory more efficiently, as it is selling its inventory at a faster rate each year.

A higher inventory turnover ratio suggests that the company is selling its inventory quickly, which can lead to lower carrying costs and reduced risk of obsolescence. It also indicates that the company is effectively managing its supply chain and production processes to meet the demand in the market.

Overall, the increasing trend in inventory turnover for Amphastar Pharmaceuticals Inc is a positive sign of operational efficiency and effective management of inventory levels.