Avantor Inc (AVTR)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 4,504,300 4,603,400 4,909,600 4,883,400 4,313,100
Inventory US$ in thousands 731,500 828,100 913,500 872,000 739,600
Inventory turnover 6.16 5.56 5.37 5.60 5.83

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,504,300K ÷ $731,500K
= 6.16

The inventory turnover ratio of Avantor Inc has shown a gradual decline from 5.83 in December 31, 2020, to 5.60 in December 31, 2021, and further down to 5.37 in December 31, 2022. However, there was a slight improvement to 5.56 in December 31, 2023, and a noticeable increase to 6.16 in December 31, 2024. This indicates that Avantor Inc's ability to sell through its inventory efficiently has varied over the years, with a recent increase suggesting improved inventory management and potentially stronger sales performance.