Artivion Inc (AORT)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	349,545	284,537	101,322	85,443	93,209
Inventory	US$ in thousands	81,976	74,478	76,971	73,038	53,071
Inventory turnover		4.26	3.82	1.32	1.17	1.76

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $349,545K ÷ $81,976K
= 4.26

Artivion Inc's inventory turnover has fluctuated over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times the company's inventory is sold and replaced over a certain period.

In 2023, the inventory turnover ratio was 1.52, indicating that Artivion Inc turned over its inventory 1.52 times during the year. This suggests a slight improvement compared to the previous year's ratio of 1.49.

The trend over the last five years shows some variability in inventory turnover. In 2021 and 2022, the ratio decreased slightly from the previous years, which could indicate potential inventory management issues or slower sales. However, in 2019, Artivion Inc's inventory turnover was relatively high at 1.76, indicating efficient inventory management.

Overall, Artivion Inc should continue to monitor its inventory turnover ratio to ensure effective management of its inventory levels, as a consistently low turnover ratio could tie up capital in unsold inventory, while a high turnover ratio could suggest potential issues with overstocking or understocking.