Amphenol Corporation (APH)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,470,600 | 8,445,200 | 8,529,700 | 8,600,100 | 8,594,800 | 8,478,700 | 8,172,100 | 7,850,200 | 7,474,500 | 7,049,300 | 6,709,200 | 6,282,200 | 5,934,800 | 5,746,700 | 5,596,900 | 5,580,900 | 5,609,400 | 5,646,800 | 5,648,900 | 5,617,800 |
| Inventory | US$ in thousands | 2,167,100 | 2,099,100 | 1,997,800 | 2,105,100 | 2,093,600 | 2,080,100 | 2,043,700 | 1,989,700 | 1,894,100 | 1,952,500 | 1,771,400 | 1,565,100 | 1,462,200 | 1,391,000 | 1,361,900 | 1,325,000 | 1,310,100 | 1,273,500 | 1,275,300 | 1,224,400 |
| Inventory turnover | 3.91 | 4.02 | 4.27 | 4.09 | 4.11 | 4.08 | 4.00 | 3.95 | 3.95 | 3.61 | 3.79 | 4.01 | 4.06 | 4.13 | 4.11 | 4.21 | 4.28 | 4.43 | 4.43 | 4.59 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,470,600K ÷ $2,167,100K
= 3.91
Inventory turnover is a key financial ratio that measures how quickly a company sells its inventory during a specific period. A higher inventory turnover ratio indicates more efficient management of inventory levels.
Looking at the inventory turnover trend of Amphenol Corp. over the past eight quarters, we observe a relatively stable performance with values ranging from 3.91 to 4.27. This indicates that the company has been effectively managing its inventory turnover, with a consistent ability to sell and replace its inventory.
The slight fluctuations in the inventory turnover ratio suggest that Amphenol Corp. has been maintaining a balance between ensuring adequate inventory levels to meet customer demand and avoiding excess inventory buildup. The company's ability to sustain a healthy inventory turnover ratio reflects operational efficiency and effective inventory management practices.
Overall, the trend of inventory turnover for Amphenol Corp. demonstrates a consistent performance in managing its inventory efficiently over the observed periods. It indicates that the company has been able to effectively control its inventory levels and convert them into sales, which is a positive indicator of its operational effectiveness.