Avanos Medical Inc (AVNS)

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 306,500 300,800 299,100 294,600 310,500 335,200 351,400 367,900 370,900 366,800 368,500 381,100 380,300 379,900 376,100 352,600 341,500 325,500 312,000 308,300
Inventory US$ in thousands 138,800 161,900 163,900 165,600 163,200 156,600 148,300 200,000 190,300 193,600 169,000 157,600 150,300 158,400 159,700 165,200 168,900 184,100 174,100 153,100
Inventory turnover 2.21 1.86 1.82 1.78 1.90 2.14 2.37 1.84 1.95 1.89 2.18 2.42 2.53 2.40 2.36 2.13 2.02 1.77 1.79 2.01

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $306,500K ÷ $138,800K
= 2.21

The inventory turnover for Avanos Medical Inc over the past few years has shown fluctuations, reflecting the company's efficiency in managing its inventory.

The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. A higher inventory turnover ratio generally indicates more efficient inventory management, as it implies that the company is selling its products quickly.

Looking at the data provided:
- During the first half of 2020, the inventory turnover ratio declined from 2.01 in March to 1.79 in June, indicating a slower rate of inventory turnover.
- However, by the end of 2020, the ratio increased to 2.02, suggesting that inventory management had improved.
- In the following quarters of 2021 and 2022, the inventory turnover ratio continued to rise steadily, reaching a peak of 2.53 in December 2021.
- From March 2023 to December 2024, the inventory turnover ratio fluctuated between 1.78 and 2.37, showing some variability in inventory management efficiency.

Overall, while there have been periods of fluctuation, Avanos Medical Inc has generally maintained a reasonable level of inventory turnover, indicating a balanced approach to managing its inventory levels and sales.