Amphenol Corporation (APH)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,470,600 | 8,594,800 | 7,474,500 | 5,934,800 | 5,609,400 |
| Inventory | US$ in thousands | 2,167,100 | 2,093,600 | 1,894,100 | 1,462,200 | 1,310,100 |
| Inventory turnover | 3.91 | 4.11 | 3.95 | 4.06 | 4.28 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,470,600K ÷ $2,167,100K
= 3.91
The inventory turnover ratio of Amphenol Corp. has shown a declining trend over the past five years. The ratio was 4.28 in 2019, decreasing to 4.06 in 2020, 3.95 in 2021, 4.11 in 2022, and further declining to 3.91 in 2023. A decreasing inventory turnover ratio may indicate that the company is holding onto inventory for a longer period before selling it, which could potentially lead to higher carrying costs and a risk of obsolete inventory. It is important for the company to monitor its inventory levels closely to optimize its turnover and ensure efficient management of its inventory.