Mativ Holdings Inc. (MATV)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,316,600 | 2,875,900 | 2,655,600 | 2,416,700 | 2,143,700 | 1,505,700 | 1,176,700 | 1,139,600 | 994,900 | 994,900 | 874,300 | 729,700 | 701,800 | 699,300 | 677,700 | 682,300 | 682,200 | 680,800 | 651,900 | 617,700 |
| Inventory | US$ in thousands | 352,900 | 364,600 | 521,600 | 544,400 | 414,600 | 485,400 | 276,400 | 272,400 | 259,500 | 261,300 | 247,000 | 173,300 | 179,700 | 172,800 | 172,100 | 159,500 | 161,400 | 149,400 | 154,200 | 154,500 |
| Inventory turnover | 6.56 | 7.89 | 5.09 | 4.44 | 5.17 | 3.10 | 4.26 | 4.18 | 3.83 | 3.81 | 3.54 | 4.21 | 3.91 | 4.05 | 3.94 | 4.28 | 4.23 | 4.56 | 4.23 | 4.00 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,316,600K ÷ $352,900K
= 6.56
Inventory turnover measures how effectively a company is managing its inventory by indicating how many times during a period the company sells and replaces its average inventory. In the case of Mativ Holdings Inc, the inventory turnover fluctuated over the past eight quarters, ranging from 3.10 to 5.65.
A higher inventory turnover is generally preferred as it signifies that the company is selling goods quickly and efficiently. Mativ's inventory turnover peaked in Q3 2023 at 5.65, indicating that the company was able to sell and replace its inventory more than five times during that quarter. This suggests strong sales and efficient inventory management during that period.
In contrast, the lowest inventory turnover was seen in Q2 2022 at 3.10, which implies that the company took longer to sell and replace its inventory during that quarter. This could be due to various reasons such as slow sales, excessive inventory levels, or ineffective inventory management practices.
Overall, it is essential for Mativ Holdings Inc to closely monitor its inventory turnover consistently to ensure optimal inventory management, efficient operations, and maximization of profitability. fluctuations in inventory turnover could indicate changing business conditions that may require adjustments in the company's operations or sales strategies.
Peer comparison
Dec 31, 2023
Dec 31, 2023