Avient Corp (AVNT)

Inventory turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 3,052,200 3,255,300 4,509,800 3,114,800 2,735,400
Inventory US$ in thousands 347,000 372,700 305,800 327,500 260,900
Inventory turnover 8.80 8.73 14.75 9.51 10.48

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,052,200K ÷ $347,000K
= 8.80

Avient Corp's inventory turnover has shown a decreasing trend over the past five years, declining from 8.45 in 2019 to 6.49 in 2023. This indicates that the company is taking longer to sell its inventory, which may be a concern as it ties up capital in unsold goods. A lower inventory turnover could suggest inefficient inventory management, overstocking, or difficulties in selling products. Avient Corp may need to review its inventory management practices to improve efficiency and optimize its working capital. It is important for the company to monitor and address factors affecting inventory turnover to enhance its overall financial performance and profitability.


Peer comparison

Dec 31, 2023