Amphastar P (AMPH)

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	293,274	275,164	264,630	251,767	250,127	250,925	250,321	244,497	238,029	232,465	218,373	216,715	206,506	197,419	195,381	189,412	190,434	195,433	196,831	195,147
Inventory	US$ in thousands	105,833	109,978	104,617	103,647	103,584	103,250	98,733	95,147	92,807	100,240	97,931	97,110	96,831	108,870	104,726	107,900	110,501	109,854	99,232	78,580
Inventory turnover		2.77	2.50	2.53	2.43	2.41	2.43	2.54	2.57	2.56	2.32	2.23	2.23	2.13	1.81	1.87	1.76	1.72	1.78	1.98	2.48

December 31, 2023 calculation

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

Amphastar Pharmaceuticals Inc's inventory turnover ratio has exhibited some fluctuation in recent quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory over a specific period.

In Q4 2023, the inventory turnover ratio was 2.77, indicating that the company sold and replaced its inventory approximately 2.77 times during that quarter. This represented an improvement compared to the previous quarter, Q3 2023, which had a ratio of 2.50.

Looking at the trend over the past year, the inventory turnover ratio has generally been around the 2.5 to 2.7 range, with some minor variations. This consistency suggests that Amphastar Pharmaceuticals Inc has been maintaining a relatively stable inventory turnover performance.

A higher inventory turnover ratio is generally preferred as it implies that the company is efficiently managing its inventory levels. However, it is essential to consider industry norms and the company's specific operational requirements when evaluating this ratio.

Overall, although there have been fluctuations, the inventory turnover ratio of Amphastar Pharmaceuticals Inc indicates a reasonable level of inventory management efficiency over the analyzed period.