Enovis Corp (ENOV)
Inventory turnover
| Dec 31, 2024 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,010,589 | 947,763 | 860,772 | 763,702 | 716,418 | 702,747 | 696,179 | 695,247 | 1,117,298 | 1,544,885 | 1,937,915 | 2,325,648 | 2,240,645 | 2,109,535 | 2,010,326 | 1,822,656 | 1,782,664 | 1,801,757 | 1,818,323 | 1,971,638 |
| Inventory | US$ in thousands | 547,120 | 609,665 | 615,037 | 586,002 | 468,832 | 470,913 | 453,897 | 438,957 | 426,643 | 416,872 | 400,852 | 852,814 | 776,295 | 780,984 | 663,540 | 606,208 | 564,822 | 536,052 | 556,708 | 561,675 |
| Inventory turnover | 1.85 | 1.55 | 1.40 | 1.30 | 1.53 | 1.49 | 1.53 | 1.58 | 2.62 | 3.71 | 4.83 | 2.73 | 2.89 | 2.70 | 3.03 | 3.01 | 3.16 | 3.36 | 3.27 | 3.51 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,010,589K ÷ $547,120K
= 1.85
Enovis Corp's inventory turnover, as reflected in the provided data, has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times the inventory is sold and replaced within a specific period.
The trend in Enovis Corp's inventory turnover shows a general decline from 3.51 on March 31, 2020, to 1.85 on December 31, 2024. A decreasing inventory turnover may indicate that the company is holding onto its inventory for a longer period, possibly due to factors such as overstocking, slowing sales, or inefficiencies in managing inventory levels.
It is noteworthy that there are periods, such as June 30, 2022, where the inventory turnover ratio spikes significantly to 4.83, indicating a sudden increase in the speed at which inventory is being sold and replaced. This could be a result of various factors such as seasonal fluctuations, strategic inventory management decisions, or changes in demand patterns.
However, the overall downward trend in inventory turnover raises concerns about the company's ability to efficiently manage its inventory levels and convert them into sales. In such cases, Enovis Corp may need to reevaluate its inventory management practices, streamline operations, and possibly adjust its sales strategies to improve efficiency and optimize inventory turnover in the future.
Peer comparison
Dec 31, 2024
Dec 31, 2024