Avient Corp (AVNT)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,183,700	2,240,100	2,514,200	3,719,200	2,457,800
Inventory	US$ in thousands	346,800	347,000	372,700	461,100	327,500
Inventory turnover		6.30	6.46	6.75	8.07	7.50

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,183,700K ÷ $346,800K
= 6.30

Based on the data provided, Avient Corp's inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory during a specific period.

In December 2020, Avient Corp's inventory turnover was 7.50, indicating that the company sold and replaced its inventory approximately 7.5 times during that year. The ratio increased to 8.07 by December 2021, suggesting an improvement in inventory management efficiency.

However, in the subsequent years, Avient Corp's inventory turnover ratio declined. By December 2024, the ratio had decreased to 6.30, indicating a decrease in the frequency of inventory turnover.

A decreasing inventory turnover ratio may imply overstocking or slow-moving inventory, which could tie up capital and increase holding costs. Therefore, Avient Corp may need to reassess its inventory management strategies to enhance efficiency and optimize working capital utilization.