Enhabit Inc. (EHAB)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Cost of revenue (ttm)	US$ in thousands	1,089,700	1,192,500	1,188,700	1,091,400
Inventory	US$ in thousands	—	3,600	2,100	4,300	—	-8,000	—
Inventory turnover		—	331.25	566.05	253.81

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,089,700K ÷ $—K
= —

The inventory turnover of Enhabit Inc. has been fluctuating over the past few quarters. In Jun 2022, the inventory turnover was 566.05, indicating that the company's inventory was sold and replaced more than five times during that period. This suggests efficient management of inventory and swift sales. However, there was a significant decline in inventory turnover in Mar 2023 to 253.81, indicating that the company's inventory turnover slowed down during that quarter. This could be a sign of excess inventory or a slowdown in sales.

Overall, Enhabit Inc. should monitor its inventory turnover closely to ensure optimal inventory management and to maintain a balance between holding enough inventory to meet demand and avoiding excess inventory accumulation.