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

Company name
Symbol
Inventory turnover
Mativ Holdings Inc.
MATV
6.56
International Paper
IP
8.06
Sylvamo Corp
SLVM
5.83