Enviri Corporation (NVRI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,633,660 | 1,553,340 | 1,490,560 | 1,242,290 | 277,096 |
| Inventory | US$ in thousands | 86,292 | 81,375 | 70,493 | 61,001 | 156,991 |
| Inventory turnover | 18.93 | 19.09 | 21.14 | 20.37 | 1.77 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,633,660K ÷ $86,292K
= 18.93
The inventory turnover ratio measures how efficiently a company manages its inventory by gauging how many times the company sells and replaces its inventory over a specific period. A higher inventory turnover ratio indicates that the company is selling its products quickly and not holding onto excess inventory.
Enviri Corp's inventory turnover has shown a consistent improvement over the past five years, increasing from 7.29 in 2019 to 18.93 in 2023. This signifies that the company has been more efficient in managing its inventory levels and turning inventory into sales.
The trend of increasing inventory turnover is a positive indicator of inventory management effectiveness, showing that Enviri Corp is selling its products more rapidly and minimizing excess or obsolete inventory. It suggests that the company has a streamlined supply chain and effective sales and inventory management processes in place.
Overall, the rising inventory turnover ratio for Enviri Corp reflects a positive trend in the company's operational efficiency and effectiveness in managing inventory levels over the years.