Amphastar P (AMPH)

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	358,112	340,202	323,082	308,828	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
Inventory	US$ in thousands	153,741	130,316	122,411	115,494	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
Inventory turnover		2.33	2.61	2.64	2.67	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

December 31, 2024 calculation

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

Amphastar P's inventory turnover has shown a consistent upward trend from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures how many times a company's inventory is sold and replaced within a specific period. The company's inventory turnover increased from 1.76 on March 31, 2020, to 2.33 on December 31, 2024.

A higher inventory turnover ratio indicates more efficient management of inventory, as it suggests that inventory is being sold and replaced at a faster rate. In the case of Amphastar P, the gradual increase in the inventory turnover ratio over the years signifies improved efficiency in managing and selling inventory.

The company's inventory turnover ratio reached its peak of 2.77 on December 31, 2023, indicating that inventory was being turned over more than 2.5 times during that period. This could be attributed to better inventory management practices, effective sales strategies, and demand forecasting.

Overall, the increasing trend in Amphastar P's inventory turnover ratio suggests that the company is effectively managing its inventory levels, optimizing sales, and meeting customer demand efficiently, which is a positive indicator of its operational performance and efficiency in managing its inventory resources.