Embecta Corp (EMBC)

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
Cost of revenue (ttm) US$ in thousands 747,800 724,300 355,100 342,900 320,900 246,200
Inventory US$ in thousands 149,200 152,100 170,300 157,600 143,400 122,800 130,300 122,400 119,100
Inventory turnover 5.01 4.76 2.09 2.18 2.24 2.00

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $747,800K ÷ $149,200K
= 5.01

Embecta Corp's inventory turnover has shown fluctuations over the past few quarters. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a certain period. A higher inventory turnover ratio suggests that the company is selling its inventory quickly and efficiently.

In the most recent quarter, the inventory turnover ratio stood at 5.01, which indicates that Embecta Corp sold and replaced its inventory approximately 5 times during that period. This represents a significant improvement from the previous quarter when the ratio was 4.76. The increase in inventory turnover may be a positive sign of effective inventory management, allowing the company to convert its inventory into sales more rapidly.

However, in the preceding quarters, the inventory turnover ratios were lower, ranging from 2.00 to 2.24, suggesting a slower rate of inventory turnover during those periods. This could indicate potential inefficiencies in managing inventory levels, which may tie up capital and lead to carrying costs.

Overall, the recent improvement in inventory turnover for Embecta Corp is a positive signal, but it would be beneficial for the company to continuously monitor and optimize its inventory management practices to ensure efficient use of resources and maximize profitability.


Peer comparison

Dec 31, 2023

Dec 31, 2023