Avient Corp (AVNT)

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	2,183,700	2,189,200	2,193,800	2,185,400	2,232,700	2,358,600	2,428,100	2,843,000	3,245,000	3,575,000	3,911,500	3,859,400	3,719,200	3,514,900	3,264,800	2,777,700	2,457,800	2,219,000	2,049,500	2,288,400
Inventory	US$ in thousands	346,800	377,800	365,900	354,000	347,000	349,600	359,000	371,900	372,700	441,500	494,000	475,400	461,100	477,200	412,500	357,000	327,500	311,400	241,500	271,100
Inventory turnover		6.30	5.79	6.00	6.17	6.43	6.75	6.76	7.64	8.71	8.10	7.92	8.12	8.07	7.37	7.91	7.78	7.50	7.13	8.49	8.44

December 31, 2024 calculation

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

Avient Corp's inventory turnover has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio represents how many times a company's inventory is sold and replaced over a certain period.

The data indicates that Avient Corp's inventory turnover ratio ranged from a low of 5.79 in September 30, 2024, to a high of 8.71 in December 31, 2022. A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory by selling products quickly and restocking inventory at a fast pace. Conversely, a lower ratio may suggest excess inventory levels or difficulties in selling products.

The trend in inventory turnover for Avient Corp shows some variation but generally remains within a reasonable range over the period. It is important for the company to evaluate the reasons behind the fluctuations in the inventory turnover ratio, as this could signal inefficiencies in inventory management, changes in demand, or other operational issues that need to be addressed to maintain a healthy balance between inventory levels and sales.