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