Amphastar P (AMPH)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	358,112	293,274	250,127	238,029	206,506
Inventory	US$ in thousands	153,741	105,833	103,584	92,807	96,831
Inventory turnover		2.33	2.77	2.41	2.56	2.13

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $358,112K ÷ $153,741K
= 2.33

Amphastar P's inventory turnover has shown variations over the past five years. The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times a company sells and replaces its inventory over a specific period.

In December 2020, the inventory turnover ratio was 2.13, indicating that the company sold and replenished its inventory approximately 2.13 times during that year. The ratio increased to 2.56 by December 2021, suggesting that the company managed its inventory more efficiently that year.

In December 2022, the inventory turnover ratio slightly decreased to 2.41 before rising to 2.77 in December 2023, indicating a significant improvement in inventory management efficiency. However, by December 2024, the ratio declined to 2.33, showing a slight decrease in inventory turnover efficiency compared to the previous year.

Overall, despite some fluctuations, the general trend in inventory turnover for Amphastar P shows an improvement in managing its inventory efficiently over the five-year period, with the highest turnover ratio achieved in December 2023.