Amphenol Corporation (APH)
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 | 10,082,900 | 9,472,900 | 8,941,700 | 8,607,300 | 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 |
| Inventory | US$ in thousands | 2,545,700 | 2,578,800 | 2,398,800 | 2,152,900 | 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 |
| Inventory turnover | 3.96 | 3.67 | 3.73 | 4.00 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,082,900K ÷ $2,545,700K
= 3.96
Inventory turnover is a crucial efficiency ratio that measures how many times a company sells and replaces its inventory during a specific period. For Amphenol Corporation, the inventory turnover has fluctuated over the years according to the data provided.
From March 31, 2020, to December 31, 2024, the inventory turnover for Amphenol Corporation ranged from a low of 3.61 to a high of 4.27 times. This indicates that, on average, Amphenol Corporation has been able to turn over its inventory between 3.61 to 4.27 times per year during this period.
A decreasing trend in inventory turnover can suggest potential issues, such as overstocking or slow-moving inventory, which may tie up working capital. On the other hand, an increasing trend may indicate efficient inventory management and faster-moving inventory.
In the case of Amphenol Corporation, although there have been fluctuations in the inventory turnover ratio over the years, the general trend seems relatively stable around the 4 times mark. This suggests that Amphenol Corporation has been managing its inventory efficiently and consistently over the years, providing a positive signal regarding the company's operational effectiveness in inventory management.