Amphenol Corporation (APH)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,083,000 | 8,470,600 | 8,594,800 | 7,474,500 | 5,934,800 |
| Inventory | US$ in thousands | 2,545,700 | 2,167,100 | 2,093,600 | 1,894,100 | 1,462,200 |
| Inventory turnover | 3.96 | 3.91 | 4.11 | 3.95 | 4.06 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,083,000K ÷ $2,545,700K
= 3.96
Based on the provided data, Amphenol Corporation's inventory turnover has fluctuated over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory.
In the year ending December 31, 2020, the inventory turnover was 4.06 times, which means that Amphenol Corporation sold and replaced its inventory approximately four times during that year.
In the following year, the inventory turnover slightly decreased to 3.95 times by December 31, 2021. This indicates that the company took slightly longer to sell and replace its inventory compared to the previous year.
By December 31, 2022, the inventory turnover increased to 4.11 times, suggesting that Amphenol Corporation improved its inventory management and was able to sell and replace its inventory more frequently.
However, by December 31, 2023, the inventory turnover declined to 3.91 times, indicating a decrease in the efficiency of managing inventory during that year.
In the most recent data available, by December 31, 2024, the inventory turnover was 3.96 times, showing a slight improvement compared to the previous year but still lower than the peak in 2022.
Overall, the trend in Amphenol Corporation's inventory turnover has been somewhat fluctuating over the past five years, with some years showing improvements in inventory management efficiency and others showing slight declines. This ratio can be a useful metric to assess the effectiveness of the company's inventory management practices and its ability to convert inventory into sales.