Avanos Medical Inc (AVNS)

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	645,700	716,000	735,500	746,500	746,300	738,100	735,400	745,700	727,800	771,000	772,100	738,600	744,700	699,900	697,300	712,100	714,500	880,300	709,700	687,400
Inventory	US$ in thousands	163,200	156,600	148,300	200,000	132,300	193,600	169,000	157,600	159,300	158,400	159,700	165,200	168,900	184,100	174,100	153,100	145,900	144,500	133,900	129,600
Inventory turnover		3.96	4.57	4.96	3.73	5.64	3.81	4.35	4.73	4.57	4.87	4.83	4.47	4.41	3.80	4.01	4.65	4.90	6.09	5.30	5.30

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $645,700K ÷ $163,200K
= 3.96

Avanos Medical Inc's inventory turnover has fluctuated over the past eight quarters, ranging from a low of 1.80 in Q4 2023 to a high of 2.42 in Q1 2022. The average quarterly inventory turnover during this period is approximately 2.05. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently, which is generally preferable as it signifies efficient inventory management. However, the downward trend in inventory turnover from Q1 2022 to Q4 2023 may suggest potential issues such as overstocking, slow sales, or ineffective inventory management. It is important for Avanos Medical Inc to closely monitor and analyze its inventory turnover to determine the root causes of fluctuations and take appropriate actions to optimize inventory levels and improve efficiency.