Artivion Inc (AORT)

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	147,578	144,347	141,161	133,678	124,828	120,763	117,273	114,274	111,266	110,776	107,100	104,567	101,322	96,607	94,188	86,434	85,443	85,283	85,943	92,235
Inventory	US$ in thousands	79,766	84,123	80,802	81,716	81,976	78,792	78,458	76,273	74,478	73,044	74,318	76,208	76,971	78,319	76,362	73,375	73,038	69,402	62,708	54,300
Inventory turnover		1.85	1.72	1.75	1.64	1.52	1.53	1.49	1.50	1.49	1.52	1.44	1.37	1.32	1.23	1.23	1.18	1.17	1.23	1.37	1.70

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $147,578K ÷ $79,766K
= 1.85

Inventory turnover is a crucial financial ratio that measures how efficiently a company is managing its inventory. It indicates the number of times a company sells and replaces its inventory within a specific period.

Analyzing the inventory turnover of Artivion Inc based on the provided data, we observe fluctuations in the ratio over the quarters. The inventory turnover ratio has shown a general declining trend from 1.70 on March 31, 2020, to 1.85 on December 31, 2024. This suggests that the company may be taking longer to sell its inventory or holding excess inventory compared to earlier periods.

It is notable that there have been periods of improvement in the inventory turnover ratio, such as an increase from 1.17 on December 31, 2020, to 1.32 on December 31, 2021. These improvements indicate that the company may have enhanced its inventory management practices, leading to a quicker turnover of inventory.

Overall, a comprehensive analysis of Artivion Inc's inventory turnover suggests that the company should focus on optimizing its inventory management strategies to maintain a healthy balance between having enough inventory to meet demand and avoiding excess inventory that could tie up capital.