Kenvue Inc. (KVUE)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023
Cost of revenue (ttm)	US$ in thousands	13,888,000	10,864,000	10,848,000	10,329,000	8,617,000
Inventory	US$ in thousands	1,591,000	1,820,000	1,849,000	1,884,000	1,851,000
Inventory turnover		8.73	5.97	5.87	5.48	4.66

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $13,888,000K ÷ $1,591,000K
= 8.73

The inventory turnover ratio is a key financial metric that indicates how efficiently a company manages its inventory. For Kenvue Inc., the inventory turnover has shown a positive trend over the past year.

As of December 31, 2023, the inventory turnover was 4.66, which means that the company's inventory was sold and replaced approximately 4.66 times during the year. By March 31, 2024, the ratio improved to 5.48, indicating that the company is selling and replenishing its inventory at a faster rate.

Further improvement was seen by June 30, 2024, with an inventory turnover of 5.87, and then again by September 30, 2024, reaching 5.97. The significant increase in efficiency was evident by December 31, 2024, with an inventory turnover of 8.73, suggesting that Kenvue Inc. managed its inventory exceptionally well during that period.

Overall, the increasing trend in the inventory turnover ratio indicates that Kenvue Inc. is effectively managing its inventory levels, improving sales processes, and potentially reducing carrying costs. This trend reflects positively on the company's operational efficiency and financial performance.