Mativ Holdings Inc. (MATV)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,080,100 | 2,143,700 | 1,377,000 | 956,900 | 896,000 |
| Inventory | US$ in thousands | 352,900 | 414,600 | 259,500 | 179,700 | 161,400 |
| Inventory turnover | 5.89 | 5.17 | 5.31 | 5.32 | 5.55 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,080,100K ÷ $352,900K
= 5.89
Inventory turnover is a key efficiency ratio that shows how many times a company's inventory is sold and replaced within a given period. Looking at the trend for Mativ Holdings Inc over the past five years, we can see fluctuations in the inventory turnover ratio.
In 2023, the inventory turnover ratio stands at 4.73, indicating that Mativ Holdings Inc sold and replaced its inventory approximately 4.73 times during the year. This represents an improvement from the previous year's ratio of 3.23. The increase in inventory turnover suggests that the company is managing its inventory more effectively and efficiently, possibly due to better inventory management practices or increased demand for its products.
Comparing the current ratio to previous years, we see that it is higher than the ratios for 2021 (4.28), 2020 (4.26), and 2019 (4.54). This suggests that Mativ Holdings Inc has been able to turn over its inventory at a quicker pace in 2023 compared to these years, showcasing improved efficiency in inventory management.
Overall, the increasing trend in inventory turnover for Mativ Holdings Inc indicates a positive development in the company's operational efficiency and handling of inventory levels, which can lead to improved financial performance and potentially higher profitability.
Peer comparison
Dec 31, 2023