Enovis Corp (ENOV)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 926,867 | 716,418 | 693,718 | 2,240,640 | 1,782,660 |
| Inventory | US$ in thousands | 547,120 | 468,832 | 426,643 | 776,295 | 564,822 |
| Inventory turnover | 1.69 | 1.53 | 1.63 | 2.89 | 3.16 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $926,867K ÷ $547,120K
= 1.69
Enovis Corp's inventory turnover has been trending downward over the past five years. As of December 31, 2020, the inventory turnover ratio was 3.16, indicating that the company was selling and replenishing its inventory approximately 3.16 times during that year.
However, by December 31, 2024, the inventory turnover ratio had decreased to 1.69, suggesting that the company took longer to sell and replenish its inventory compared to previous years. This decline may raise concerns about inventory management efficiency and potentially tie up more capital in unsold inventory.
The decreasing trend in inventory turnover could indicate issues such as overstocking, declining demand for Enovis Corp's products, or inefficiencies in the supply chain. It would be prudent for Enovis Corp to conduct a detailed analysis of its inventory management practices and make strategic adjustments to improve inventory turnover and optimize working capital utilization.
Peer comparison
Dec 31, 2024