Avient Corp (AVNT)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	3,052,200	3,190,500	3,234,500	3,635,300	4,012,500	4,321,900	4,670,900	4,634,600	4,509,800	4,307,200	4,063,500	3,498,100	3,114,700	2,162,800	1,918,200	2,176,200	2,348,800	2,331,900	2,482,200	2,487,400
Inventory	US$ in thousands	347,000	349,600	359,000	371,900	372,700	441,500	494,000	475,400	305,800	477,200	412,500	357,000	327,500	311,400	241,500	271,100	260,900	281,600	353,300	374,900
Inventory turnover		8.80	9.13	9.01	9.77	10.77	9.79	9.46	9.75	14.75	9.03	9.85	9.80	9.51	6.95	7.94	8.03	9.00	8.28	7.03	6.63

December 31, 2023 calculation

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

Avient Corp's inventory turnover has exhibited fluctuations over the past eight quarters. The company's inventory turnover ratios ranged from a low of 4.66 in Q3 2023 to a high of 8.10 in Q3 2022. The average inventory turnover for the period was approximately 6.51.

A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a given period, which can signal strong demand, efficient inventory management, and effective sales strategies. Conversely, a lower turnover ratio may suggest overstocking, slower sales, or ineffective inventory management.

The declining trend in inventory turnover from Q2 2022 to Q3 2023 may indicate potential issues, such as excess inventory levels, slowing sales, or inefficiencies in inventory management that warrant further investigation and corrective action by Avient Corp. It is crucial for the company to closely monitor and optimize its inventory turnover to ensure efficient operations, maximize profitability, and maintain competitiveness in the market.