Embecta Corp (EMBC)

Inventory turnover

		Sep 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	765,900	753,300	769,400	747,800	724,300	355,100	342,900	320,900	246,200
Inventory	US$ in thousands	171,500	185,600	153,200	149,200	152,100	170,300	157,600	143,400	122,800	130,300	122,400	119,100
Inventory turnover		4.47	4.06	5.02	5.01	4.76	2.09	2.18	2.24	2.00

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $765,900K ÷ $171,500K
= 4.47

Embecta Corp's inventory turnover has exhibited some fluctuations over the past several quarters. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period. A higher turnover ratio is generally preferred as it signifies efficient management of inventory levels.

In the most recent quarter ending September 30, 2024, Embecta Corp achieved an inventory turnover of 4.47 times. This implies that the company's inventory was sold and replaced approximately 4.47 times during the quarter. Compared to the prior quarter, the turnover ratio has increased from 4.06 to 4.47, indicating a more efficient management of inventory.

Looking further back, the trend in inventory turnover for Embecta Corp has been somewhat volatile. In the earlier quarters of 2023, inventory turnover was significantly lower, but it has shown an increasing trend since then, reaching a peak of 5.02 in March 2024. This suggests that the company may have made efforts to streamline its inventory management processes to improve turnover rates.

Overall, while Embecta Corp has experienced fluctuations in its inventory turnover ratio over the analyzed period, the recent improvement to 4.47 times indicates a positive trend towards more efficient management of inventory levels. Moving forward, continued monitoring and optimization of inventory turnover will be important for the company to maintain a healthy balance between inventory levels and sales.