Innovex International, Inc (INVX)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	428,172	308,648	310,036	207,445	269,884
Inventory	US$ in thousands	271,173	194,593	136,655	92,293	212,536
Inventory turnover		1.58	1.59	2.27	2.25	1.27

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $428,172K ÷ $271,173K
= 1.58

The inventory turnover ratios for Innovex International, Inc. over the specified period reflect notable fluctuations in inventory management efficiency. As of December 31, 2020, the ratio was 1.27, indicating that the company's inventory was sold and replaced approximately 1.27 times during that year. Moving into 2021, there was a significant improvement, with the ratio rising to 2.25, suggesting a more efficient inventory turnover and potentially improved sales or inventory management practices.

This upward trend continued into 2022, with a marginal increase to 2.27, implying that the company's inventory management stabilized at a higher turnover level compared to 2020. However, a decline is observed in 2023 when the ratio decreased to 1.59, indicating a slowdown in inventory turnover and possibly reflecting challenges such as overstocking, decreased sales volumes, or supply chain disruptions. The ratio remained relatively stable in 2024 at 1.58, consistent with the previous year's performance, suggesting a continuation of the earlier reduced efficiency in inventory sales and replacement.

Overall, the data indicates an initial improvement in inventory turnover from 2020 to 2022, followed by a decline in 2023, which persisted into 2024. The fluctuations may warrant further examination of underlying operational factors, including sales performance, inventory management strategies, or external market conditions affecting inventory utilization.