Enviri Corporation (NVRI)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,914,812 | 1,829,741 | 1,783,739 | 1,707,837 | 1,620,349 | 1,596,372 | 1,580,432 | 1,577,004 | 1,553,335 | 1,555,423 | 1,596,982 | 1,648,154 | 1,692,217 | 1,717,837 | 1,695,654 | 1,605,425 | 1,500,811 | 1,408,215 | 1,307,525 | 1,209,578 |
| Inventory | US$ in thousands | 182,042 | 196,189 | 188,503 | 190,288 | 86,292 | 84,569 | 84,644 | 84,705 | 81,375 | 80,714 | 80,999 | 76,854 | 70,493 | 163,072 | 157,616 | 171,587 | 173,013 | 170,037 | 173,573 | 167,890 |
| Inventory turnover | 10.52 | 9.33 | 9.46 | 8.98 | 18.78 | 18.88 | 18.67 | 18.62 | 19.09 | 19.27 | 19.72 | 21.45 | 24.01 | 10.53 | 10.76 | 9.36 | 8.67 | 8.28 | 7.53 | 7.20 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,914,812K ÷ $182,042K
= 10.52
Enviri Corporation's inventory turnover has shown a fluctuating trend over the years based on the provided data. The inventory turnover ratio indicates how efficiently the company manages its inventory. A higher turnover ratio is generally preferred as it suggests that the company is selling its inventory quickly.
Looking at the data, we see that the inventory turnover ratio increased from 7.20 on March 31, 2020, to a peak of 24.01 on December 31, 2021. This significant increase indicates that Enviri improved its inventory management efficiency during this period, possibly by reducing excess inventory levels or increasing sales.
However, starting from March 31, 2022, the inventory turnover ratio began to decrease and stabilized around the range of 18.62 to 19.72 from March 2022 to June 2022. Although the ratio is still relatively high compared to earlier years, this downward trend raises a concern about potentially slower inventory turnover, which could lead to obsolete or excess inventory issues.
By September 30, 2024, the inventory turnover ratio had decreased further to 9.33, albeit higher than the initial ratios in 2020, indicating a need for Enviri to focus on improving its inventory management practices to prevent potential inefficiencies in the future.
In conclusion, Enviri Corporation has experienced fluctuations in its inventory turnover ratio over the years, with both peaks and declines. It is crucial for the company to closely monitor and optimize its inventory levels to ensure efficient operations and financial performance.