Avantor Inc (AVTR)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	4,524,600	4,557,200	4,603,400	4,631,500	4,695,700	4,804,600	4,909,600	4,989,200	5,001,800	4,971,100	4,883,400	4,832,600	4,712,800	4,468,800	4,313,100	4,147,400	4,078,600	4,131,800
Inventory	US$ in thousands	795,600	810,600	828,100	850,300	890,400	904,000	913,500	905,000	922,500	896,000	872,000	844,000	840,900	777,700	739,600	729,800	737,800	686,100	711,200	714,500
Inventory turnover		5.69	5.62	5.56	5.45	5.27	5.31	5.37	5.51	5.42	5.55	5.60	5.73	5.60	5.75	5.83	5.68	5.53	6.02

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,524,600K ÷ $795,600K
= 5.69

The inventory turnover ratio for Avantor Inc has been relatively stable over the past few quarters, ranging between 5.27 and 5.75. This indicates that, on average, the company's inventory is sold and replaced approximately 5.5 times to 5.7 times per year. A higher inventory turnover ratio generally suggests that a company is efficiently managing its inventory by quickly selling and replenishing stock.

While the inventory turnover ratio has fluctuated slightly, the overall trend appears to be relatively consistent, reflecting a steady management of inventory levels. A consistently high inventory turnover ratio is generally favorable as it indicates that the company is effectively managing its inventory and turning it into sales efficiently. This can help reduce holding costs and the risk of obsolescence.

However, it is important for Avantor Inc to monitor any significant deviations in the inventory turnover ratio to ensure that the company's inventory management practices remain effective and aligned with business operations. Periodic reviews and adjustments to inventory levels and procurement strategies may be necessary to maintain optimal inventory turnover levels in line with market demand.