Mativ Holdings Inc. (MATV)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,617,000 | 1,667,500 | 1,729,800 | 1,109,700 | 766,100 |
| Inventory | US$ in thousands | 355,100 | 352,900 | 534,900 | 259,500 | 179,700 |
| Inventory turnover | 4.55 | 4.73 | 3.23 | 4.28 | 4.26 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,617,000K ÷ $355,100K
= 4.55
Based on the data provided for Mativ Holdings Inc.'s inventory turnover, we can observe the following trend:
- In December 31, 2020, the inventory turnover ratio was 4.26, indicating that the company's inventory was sold and replaced approximately 4.26 times during the year.
- The ratio slightly increased to 4.28 by December 31, 2021, suggesting a slightly more efficient management of inventory during that period.
- However, there was a significant decrease in inventory turnover to 3.23 by December 31, 2022, which may indicate potential issues with inventory management, such as overstocking or slow-moving inventory.
- The ratio then improved substantially to 4.73 by December 31, 2023, implying that the company was able to sell off inventory more effectively during that year.
- By December 31, 2024, the inventory turnover ratio decreased slightly to 4.55, but still remained at a relatively healthy level.
Overall, fluctuations in the inventory turnover ratio over the years suggest variations in the company's inventory management efficiency. It is important for Mativ Holdings Inc. to closely monitor its inventory turnover to ensure optimal levels that balance between stock availability and cost-effectiveness.
Peer comparison
Dec 31, 2024