Berry Global Group Inc (BERY)

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	11,135,000	11,291,000	11,590,000	12,018,000	12,770,000	13,265,000	13,533,000	13,475,000	13,078,000	12,567,000	11,547,000	10,781,000	10,439,000	10,226,000	10,395,000	9,380,000	8,263,000	7,259,000	6,453,000	6,592,000
Inventory	US$ in thousands	1,689,000	1,557,000	1,730,000	1,864,000	1,901,000	1,802,000	1,978,000	1,964,000	2,041,000	1,907,000	1,735,000	1,560,000	1,503,000	1,268,000	1,318,000	1,366,000	1,412,000	1,324,000	865,000	929,000
Inventory turnover		6.59	7.25	6.70	6.45	6.72	7.36	6.84	6.86	6.41	6.59	6.66	6.91	6.95	8.06	7.89	6.87	5.85	5.48	7.46	7.10

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,135,000K ÷ $1,689,000K
= 6.59

Inventory turnover is a key financial ratio that measures the number of times a company sells and replaces its inventory during a specific period. A higher inventory turnover generally indicates that the company is efficiently managing its inventory levels.

Analyzing the inventory turnover of Berry Global Group Inc over the past few quarters, we observe fluctuating values ranging from 5.48 to 8.06. The inventory turnover ratio peaked at 8.06 in September 2020 before gradually decreasing over subsequent quarters.

Overall, Berry Global Group Inc has shown a consistent ability to turn over its inventory, with an average turnover ratio of approximately 6.93 over the reviewed period. This indicates that the company has been effectively managing its inventory levels and converting inventory into sales at a reasonable pace.

It is also noteworthy that the company's inventory turnover ratio has generally remained above 6, suggesting efficient inventory management practices. However, fluctuations in the ratio indicate potential changes in sales or inventory management strategies, warranting further investigation to understand the underlying factors driving these variations.